New Properties in London Have Parking Spaces Costing 13 Percent of Total Property Value
It appears that for the new properties in London, adding or having a parking space could be cost-prohibitive.
New research revealed, "Less than a fifth of new build properties in London include a parking space in the purchase price, compared to 67 percent for other major cities." This is because they are unaffordable and "add to the price for a buyer, which can be up to 13 percent on the price of the property." All of these findings were reported in a recent post published by PropertyWire.
Moreover, due to restrictions from developers, purchasing two or more bedroom properties with the option of buying a parking space is limited. The same research showed that the restrictions on the building parking spaces for additional properties have led to making this option a desirable commodity.
In addition, the developers' enforcement over these latest build developments is only allowing buyers of large or expensive properties to purchase a parking bay, which has led to more scrutiny.
It is apparent that tenants and property buyers have seen the importance of having their own parking space. And it is not just in London that property buyers' struggle with getting their own space.
What stood out was that in the busy streets of Hong Kong along with its dense skyscraper jungle, a $640,000 property sits among some of the world's most affluent commercial and residential spaces, as reported by CNN.
Furthermore, Nick Brabham, Head of SELECT Premier Insurance, added on to say, "Restrictions on the number of parking spaces developers can build to accompany new properties make these slots a hot commodity carrying a premium price point. In many new developments, those purchasing studios or one bedroom home are denied the opportunity to purchase space as they are reserved for larger properties."