THE lucrative trade of buying individual car parking spaces in tightly held city centres, long practised by Melbourne and Sydney real estate investors, is tipped to become a burgeoning market in Canberra soon.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Paid parking charges in the parliamentary triangle, due to start July 1, are expected to have far-reaching effects on the way Canberrans regard parking areas.
Real estate experts are anticipating office workers will soon weigh up the benefits of paying $11 per day to leave their cars in Government parks or alternatively buying a car space of their own to put the brakes on spiralling costs.
Real Estate Institute ACT president Michael Kumm said in Melbourne and Sydney investors had long bought individual spots to lease out as money-spinners.
However, Barton business owner Olivia Keppie, who paid $20,000 for a one-car space under the Mode3 building in Lonsdale Street, Braddon, last year was stunned by the size of the rates bill for the space - nearly $1900 for the car parking spot, which according to the rate bill has an unimproved land value of $4514.
Liberal spokesman for small business Andrew Wall said the charge was ''exorbitant'' and worrying.
Colliers International, which handles car parking sales at its interstate branches, predicts Canberra developers will soon recognise the opportunity to create the supply to meet growing demand.
Director of investment services at Colliers' Canberra branch Michael Heather said investors were already asking to buy car spaces.
''I think it's going to be a trend that will appear in Canberra in the next three to five years,'' Mr Heather said.
''There is private parking in Canberra at the moment but those are tightly held and the others are government owned.
''I think new developments in the city and Barton will have generous amounts of parking and developers will sell spaces off to individuals.
''They are seen as attractive investments in Melbourne and Sydney because of the minimal capital required.''
Canberra Business Council head Chris Faulks said it was critical for businesses in Braddon to have adequate parking for customers.
''I will put it on the agenda of our planning and infrastructure taskforce,'' she said.