Colliers International, Hong Kong

London City Ranks No.1 in the World

London once again took the cake as the most expensive parking district in the world, with London - City leading the way.   Sydney ranked No. 1 in Asia Pacific, with Hong Kong taking the second spot.  The findings were based on a global survey done by Colliers International, which was conducted in June and covered a broad selection of 64 metro areas in North America, as well as 74 cities in Europe, Asia and Latin America.

Colliers' first ever global parking rate report shows many of the world's financial centers dominate the list of the most expensive places to park a car.  Whether to park for a day or to have access to parking anytime during the month, the world's top financial centers are amongst the most expensive in the world. No one region dominates with a sprinkling of cities from North America, Europe and Asia Pacific all represented.  Regions such as Latin America, Africa and the middle east while relatively inexpensive all show signs of becoming more expensive as parking becomes more structured and certainly more in demand.

London – City topped the list at USD1,167 with the West End in second place at USD1,136. When parking in Sydney in Australia, the median daily rate stands at USD54.47 and monthly at USD774.76.  Interestingly three Australian cities made the top ten; Brisbane at number five and Perth at number eight.  Australia’s booming resource based economy and surging currency is the primary driver of these high parking costs.

In Hong Kong, the monthly rate is USD742.40, the most expensive parking district in Asia.  However, its daily rate of USD28.16 is not as high when compared to Japan (USD46), Brisbane (USD37.56), Melbourne (USD35.69) and Korea (USD31.25).

Which cities in Asia Pacific have the least expensive parking rates?

Jakarta in Indonesia has the lowest monthly unreserved parking rate, which stands at USD26.07, followed by Bangkok in Thailand at USD60.80.  As for the median daily rate, Delhi in India costs the least at USD1.75, with Jakarta a tiny bit more expensive at USD1.89.

North America
The Global survey carried a detailed analysis of the parking rates in North America, which showed an increase for the fifth year in a row. 

United States
The price increases found in this year’s report mirror last year’s pattern, as parking owners and operators continue to feel bullish, reflecting limited supply in many U.S. markets.   Even though the U.S. economy has slowed in 2008, office occupancies remain near cyclical peaks, and this has helped push monthly parking rates higher.   Daily rates, which are more a function of the general economy and consumer spending, have also increased – and this suggests that the sluggish retail environment and higher gas prices have yet to impact the ability of parking garage owners and operators to charge more.

The U.S. economy is widely expected to decelerate further in the coming months, and the labour market is unquestionably shaky.  For the most part, parking rates are expected to show little change in the near term – however, in select markets, we may see rates come down. 

Leading the U.S. was Midtown Manhattan, whose median rate was a remarkable USD585.00 per month to park.  However, this masks the Midtown high, which now registers USD750.00 per month.

With 53 U.S. markets and 11 Canadian markets under study, Colliers’ survey shows that over the past 12 months, the cost of parking has increased by 2.8 percent (monthly rates) in the U.S., in response to ongoing demand and only limited new supply.  Daily rates also moved higher – increasing 4.3 percent over the past year. 

Although North American cities such as New York and Boston look very expensive, their parking prices actually pale in comparison to typical monthly rates in cities such as London, Sydney and Hong Kong.    

U.S. Rates
The median monthly parking rate is now USD153.79 in the United States.  Rates range from a high of USD750.00 in midtown Manhattan to a low of USD20.00 in Memphis, Tennessee.  Daily parking rates, as noted, rose 4.3 percent in the U.S.   The median rate for daily parking is now USD15.42. 

The five most expensive parking districts in the U.S. are (median monthly rates):

• New York City, Midtown : USD585.00 per month 
• New York City, Downtown : USD462.00 per month
• Boston, MA : USD460.00 per month
• San Francisco, CA : USD350.00 per month
• Chicago, IL : USD310.00 per month

"This is our eighth year tracking the parking sector in North America, and we continue to observe a direct correlation between the rising cost of monthly parking and the ongoing strength of the office real estate market, remarked Ross Moore, senior vice president and director of market & economic research at Colliers International.  "However, parking inventory in CBDs across the country is increasingly tight.  This dearth of parking and accompanying rise in cost, coupled with skyrocketing fuel prices – all in the face of a stagnating economy – exacerbates the everyday headaches faced by commuters nationwide."

Canada
Rates for monthly parking in Canada have also increased during the past 12 months, rising 8.0 percent.  The median monthly rate for parking is now C$211.94.  Canadian daily parking rates increased 8.8 percent during the same 12-month period, and the median rate for daily parking is now C$15.16.

The five most expensive parking districts in Canada are (median monthly rates, in Canadian dollars):

• Calgary, AB : C$428.00 per month
• Montreal, QB : C$290.01 per month
• Toronto, ON : C$290.00 per month
• Vancouver, BC : C$218.40 per month
• Edmonton, AB : C$200.00 per month

Global
The three most expensive parking districts in EMEA (Europe, Middle East, Africa) are (Daily / Monthly, in U.S. dollars):

• London – City : USD68.07 per day / USD1,166.87 per month
• London – West End : USD62.23 per day / USD1,135.76 per month
• Stockholm, Sweden : USD39.40 per day / USD508.92 per month

The three most expensive parking districts in Asia Pacific are (Daily / Monthly, in U.S. dollars):

• Sydney, Australia : USD54.47 per day / USD774.76 per month
• Hong Kong, China : USD28.16 per day / USD742.40 per month
• Perth, Australia : USD15.03 per day / USD610.42 per month

The three most expensive parking districts in Latin America are (Daily / Monthly, in U.S. dollars):

• Santiago, Chile : USD200.00 per month
• Mexico City, Mexico : USD 20.00 per day / USD150.00 per month
• Lima, Peru : USD15.00 per day / USD145.00 per month

-end-

About Colliers International

Colliers Macaulay Nicolls Inc. (CMN) operating as Colliers International is a leading global real estate services company that provides a full range of services to real estate users, owners and investors worldwide. Colliers operates in 293 offices in 61 countries.  In Asia Pacific, Colliers has 62 offices in 15 countries.  Services include brokerage, property management, hotel investment sales and consulting, corporate services, valuation, consulting and appraisal services, mortgage banking and research.  Colliers International is a worldwide affiliation of independently owned and operated companies.  Locally, Colliers professionals serve clients in Hong Kong.

Contact Information

May Chow        
Regional Manager
Communications and PR, Hong Kong Marketing
Colliers International (Hong Kong) Ltd
Tel    852 2822 0736
Fax   852 2868 5275
Email: May.Chow@colliers.com

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