One recent sale of a parking space in Australia reminds us of the fact that parking spaces are small – and sometimes very valuable – pieces of real estate.
A parking spot in the Bondi beach area of Sydney was recently sold for an astounding AU$240,000 – a record for Australia and a signal of the rising cost of parking spaces in Australia's cities.
Real Estate Agent Ric Serrao of Raine & Horne Double Bay sold the 16-square-meter single lock-up parking space on Brighton Boulevard in Sydney's upscale North Bondi.
Although at the time Serrao was not aware that the sale was a record, he says, "I now have a couple of other local clients that would even pay more if they had the opportunity to get parking in their street."
"There are some very wealthy clientele living or using their properties as lifestyle properties, so I guess it's all relative," he adds.
When asked if he thought the prices would continue to rise, Serrao says, "Absolutely! I thought this price was enormous, but now I can't believe that others are coming out of the woodwork suggesting they will pay slightly more. I guess a precedence has been sent."
It is possible that sales like this will trigger changes, not just for Australia's parking industry but also for the country's real estate industry. We may start to see real estate agents specializing in parking spaces, as this business becomes even more lucrative.
Serrao notes that parking spaces have not previously been a focus of his real estate business, because the supply of spaces in his region has always been tight, "but it's something to think about as the demand increases."
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