In some cities, a car parking space – which on average is around 13 square metres – can add up to, and in some cases more than, $100,000 onto the value of an apartment.
In fact, for many smaller properties – particularly apartments – metre-for-metre, a parking spot can be the most expensive part of a real estate purchase.
For renters, it can also translate into an addition to the weekly rent for an apartment of $50 to $100 or more, depending on the area.
Victorian based company WBP Property Group have estimated what a car space can do to the value of an inner-city apartment.
In Sydney’s CBD, and areas in the east such as Waverley and Randwick and Woollahra, a garage can add as much as $120,000 to $150,000 onto the value of an apartment.
On-site spots for houses in suburbs such as Newtown, Erskineville and Marrickville add $70,000 to $120,000 in value. In Bronte, Bondi, Woollahra and Darlinghurst it’s estimated at in excess of $200,000.
In terms of units, a car spot can add $70,000 to the value of a new inner-western apartment complex, or $30,000 to $40,000 in a suburb such as Rockdale.
In Brisbane, an inner-city property without a car spot included can expect to sell at a “discount” of $30,000 to $80,000 depending on local conditions.
In Melbourne, a car park can add $40,000 to $100,000 to the value of a city apartment. For an inner-city home with an off-street spot, the value is estimated at $40,000 to $70,000.
Many councils are trying to encourage public transport which may make it more difficult for motorists who want to park in inner-city areas. For example, last year Brisbane City Lord Mayor Campbell Newman reclaimed 150 parking spots and set-up the CityCycle initiative, which house bicycles for city-dwellers to hire.
It might be the part of the property on the title that has the worst view, but the parking space is important to think about when considering purchasing an inner-city property.
Photo credit: Mattox / Royalty free