Investors need to consider all kinds of things when making property investment decisions, but when was the last time you thought about the need for — and ability to — park your car … in Australia? Probably not recently.
However, Colliers International and Parking & Traffic Consultants have done just this in a new white paper, The Evolution of Car Parking.
With limited parking spaces available in Australia’s hot central business districts, prices for car parks, or garages, have soared. Efforts by city councils to reduce the overall number of parking spaces for real estate development, along with fewer parking bays being developed in new CBD office and residential buildings, adds to the high demand. So, too, do a growing workforce, increasing CBD residential population and renewed vigor in retailing, notes the white paper.
Globally speaking, Sydney has one of the lowest CBD parking spaces to employee ratios, with only 12.2 spaces available to every 100 workers. The city’s CBD also has one of the highest nondiscounted median daily parking rates at A$70.85 ($57.15).
So get out your walking shoes, or take public transportation, the next time you’re in the land of Oz. Otherwise, the supply/demand imbalance for this alternative asset class may make you less than appreciative as you drive in circles looking for a place to park.
Not a subscriber to IREI Insights blog? Sign up to receive alerts on new blog posts.
Jennifer Molloy is editor of The Institutional Real Estate Letter – Asia Pacific.
