Recent media about record sales of car spaces in Potts Point is shining a light on the value of parking in the suburb.
So how much value does parking really add to a property and do you need a car space in Potts Point?
Why parking is in demand in Potts Point
Over the past few years, parking spaces in Potts Point have become a bit of a hot topic, with single car spaces in apartment blocks selling for up to $264,000. So where’s the demand coming from?
As I talked about in a previous article, I believe Potts Point could be Australia’s first car-less suburb thanks to public transport, walkability and new car-sharing technology that helps Sydneysiders get around the city. But locals still aren’t ready to let go of the convenience of having their own car nearby. In fact, car ownership in Potts Points decreased by only 0.9% between the 2011 and 2016 censuses, meaning 55% of locals are now car-free and a lot of residents are still vying for limited spaces.
Combine this with a reduction in residential parking permits issued by the City of Sydney and you’re left with a parking shortage in Potts Point and a premium on properties that offer a car space.
What value does a car space add in Potts Point?
When I take a look at some of our recent property sales, the benefit of a car space is clear. While we see strong sales figures for car-less properties too, the difference between a 2-bed 1-bath no-car apartment and one that has parking can be as much as $250,000.
Take these two properties, for example. They’re both on popular Macleay Street, both well appointed and both in great buildings, but the property without a car sold for $1.2 million while the other with a car space sold for $1.65 million. The car space certainly isn’t the only factor in this difference, but it definitely contributes.
What does the parking premium mean for sellers and buyers in Potts Point?
Owners of apartments with parking looking to sell in Potts Point can expect greater demand for their properties, with sale prices potentially well above that of similar units without car spaces. But this isn’t bad news for those without car spaces – we’re still seeing a strong market in Potts Points and successful sales for all apartments in our office.
Potential buyers also have a suite of options for making the most of the demand for parking in the city fringe. If a car space is essential in your search for a new home, the initial outlay can be worth it – the property’s value is likely to increase at a higher rate if it has a car space.
And if you don’t have parking but can’t part with your car? Parking rental websites like Parkhound, Carparkit and DIVVY Parking give you the best of both worlds. And, if you have parking and don’t currently use it, rather than sell it off and reduce the value of your property we’d advise you to rent it out and make a little income on the side.
If you’re looking to buy or sell an apartment with parking in Potts Point or the city fringe, get in touch with me today.