The most expensive car parks sold in Australia

Car parks could be your way into property investment if houses aren’t financially feasible. Could you be parked on a gold mine?

A recent sale of a car park in Sydney made headlines after the space was purchased for a staggering $500,000 on the real estate market.

Given the current economic pressures in Australia, some Australians are turning away from traditional investing and looking for creative ways to generate extra income, such as investing in parking spots for the purpose of leasing them out.

“We know that many people like to lease investments such as parking spots to earn some extra cash, [but] people also do it for personal reasons as having additional parking will undoubtedly add value to a property,” Alice Stolz, the Property Editor of real-estate giant Domain, told Drive.

Ms Stolz said due to the affordability challenges of the current property market, more Australians – particularly younger Australians – are investing in car parks as a “stepping stone” to the property market.

“I think we’ll start seeing younger buyers investing in parking spots [so they] can get a foothold on the property ladder, knowing that [parking] ownership is pretty low maintenance and the rates and levies are [generally] low.

“They can end up making quite good value over time because we can’t create more land, so we know that land does hold value as it continues to grow. It’s something everybody else wants.”

Michael Rosenbaum, the CEO of Parkhound – a car park rental and leasing platform – said users on the platform can earn $200–$350 a month on average.

“With capital cities increasing the cost of public parking, as well as a lack of public parking due to new developments being created without enough parking, there is a higher demand for affordable parking within those areas as well as surrounding CBD suburbs,” Mr Rosenbaum told Drive.

“This increases demand for Parkhound spots and raises the premium slightly of those spots. Factors that influence pricing include the location of the space, the space type, and amenities such as security features.”

With the help of Domain data, Drive looked at the extreme end of the price scale and found that the most expensive car parks that have been sold or listed since 2019 were all in Sydney.

“Parking in Sydney can add hundreds of thousands of dollars worth of value to a property, particularly in inner-city or highly affluent areas like Bondi and Balmain,” Ms Stolz shared with Drive.

“It should be no surprise to anyone that with Australia’s most expensive capital city being Sydney, parking is really hard to come by and people are absolutely paying a premium for it.”

Disclaimer: All photos and data used in this article are courtesy of Domain.

Australia’s most expensive car parks

5. Spring Street, Bondi Junction NSW – $120,000

Though buyers have different parking needs depending on their circumstances, Ms Stolz said that generally speaking, inner-city parking spaces that are secure, undercover, easily accessible and can fit a large car tend to have the highest selling value.

As is the case with this car park in Spring Street, Bondi Junction, that fetched a $120,000 price tag when it was sold on 1 March 2021.

“Location is everything when it comes to parking, because ultimately if you need parking and you’re in a faraway location, you’re going to be able to use that parking spot pretty easily,” Ms Stolz told Drive.

“[People] that don’t have undercover parking will always pay a premium. I do think more undercover secure parking will become more desirable, because crime continues to increase and we know our [capital] cities will become denser [as the] population grows.”

4. Quay Street, Sydney NSW – $158,000

Located in the middle of Sydney’s Chinatown district, this 24-hour Quay Street car park currently listed at $158,000 has the desirable features buyers are on the lookout for.

According to the listing, the parking space has 24-hour onsite security and management while being close to shopping centres, restaurants and public transport.

Despite the close proximity to the city centre and various forms of public transport, Ms Stolz said the convenience of inner-city parking, coupled with Australia’s strong attachment to cars, will continue to send prices “northwards”.

“Even if we talk about people in inner-city areas where a car [might] not be needed, that may be the case, [but] people still more or less want [to use] a car on the weekend even if they’re in a property that’s near public transport,” Ms Stolz explained.

3. Thames Street, Balmain NSW – $210,000

One property owner struck gold in 2020 after selling their car park on Thames Street in Balmain, overlooking Mort Bay, for $210,000.

Ms Stolz said property owners who have a dual-use parking spot will use this as financial leverage by the time the auction comes around.

“Many houses that have a terrace will come with a courtyard that can be converted into a parking spot, so when it comes to selling and they’ve got one or two parking spots, even if the resident doesn’t use that parking spot, they’ll absolutely use it on auction day to say they’ve got it,” Ms Stolz told Drive.

“Dual use [parking] is another good way of squeezing more juice out of your parking spot.”

2. Onslow Avenue, Elizabeth Bay NSW – $249,000

According to Domain data, an undercover single-car park located in Elizabeth Bay along Onslow Avenue was the second-most expensive parking space sold on the platform, selling at an astonishing $249,000 in February 2019.

Per the property listing, there are three schools within 4km of the parking space, as well as tram stops and train stations which cater to a wide range of prospective buyers.

“There are additional benefits [of purchasing a car park] that might not seem so obvious from the outset. Occasionally we do see [listings] where property owners can entitle pool access to [the car park owner],” Ms Stolz told Drive.

1. Notts Avenue, Bondi Beach NSW – $304,700

Topping the list of Domain’s most expensive parking spots in Australia is this Notts Avenue car park, which sold for a whopping $304,700 on 31 January 2024.

Unsurprisingly, the car park’s 5m distance to tourist hotspot Bondi Beach could have factored into the final selling price as investors normally target areas where there is high demand.

However, while most look to car parks as an investment that turns into a steady financial stream, some are simply looking to add it to their way of living.

“I think consumers are going to become more demanding of what they’re wanting,” Ms Stolz explained.

“We are increasingly seeing people [investing in parking spaces] for the lifestyle benefit. Some people in areas like Bondi, for example, might think it’s just worth it getting a park spot near Bondi Beach so they can head down after work and jump in the ocean.”

Honourable mentions

While the country’s five most expensive car parks are all located in Sydney, two car parks located in Adelaide and Melbourne are worthy of consideration.

Powlett Street, East Melbourne VIC – $80,000

The overwhelming popularity of large cars across Australia in 2024 has contributed to the rising selling price and investment returns of tandem parking spots – where the car parks are positioned in front of each other rather than side-by-side – particularly in apartment buildings.

Coupled with the influx of apartment buildings in major cities like Melbourne, Sydney and Brisbane, Ms Stolz said tandem parks are becoming more desirable for drivers who own large cars such as SUVs as “street parking is becoming harder and harder to come by”.

This tandem parking space, located in an apartment along Powlett Street in East Melbourne, could indicate where car park investments are heading.

The space was sold for $80,000 in February 2023, with the listing previously stating the “current income” for each park was $3939 annually.

Hindley Street, Adelaide SA – $65,000

Despite the hefty price tag, Ms Stolz said car parks in less populated cities like Adelaide are relatively cheaper when compared to other capital cities.

“In cities like Adelaide, you just have so much more space. It doesn’t have the congestion and the density of cities like Melbourne,” Ms Stolz told Drive.

The post The most expensive car parks sold in Australia appeared first on Drive.

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