Parking space sells for almost $1 million

HONG KONG: Hong Kong might be heading for recession after months of violent protests but that hasn’t stopped a single parking space changing hands for almost $1 million.

The mind-boggling sum paid to businessman Johnny Cheung Shunyee highlights the gap in equality that has helped fuel nearly five months of demonstrations in the financial hub, where one in five people live below the poverty line.

The HK$7.6 million ($970,000) price tag is more than 30 times the average annual wage in Hong Kong and about the same as a one-bed apartment in London’s plush Chelsea area.

It is situated in The Center, the city’s fifth-highest skyscraper, which hit the headlines in October 2017 when it became the world’s most expensive office building after Hong Kong’s richest man sold it for more than $5 billion.

The identity of the buyer was not known. The purchase comes even though there are growing concerns about the impact of the demonstrations on the city’s real estate market with property firms’ share prices plunging in recent months, as they are forced to offer discounts on new projects and cut office rents.

The economy has been tipped to grow just 0-1.0 per cent this year, the worst rate since 2009 during the global financial crisis.

“A lot of those owners in The Center are in finance or in other high-growth businesses,” Stanley Poon, a managing director at Centaline Commercial, said.

Hong Kong’s white-hot property market has become a political issue as costs continue to soar, forcing some small businesses to close owing to skyhigh rents.