Thinking about diving into real estate investing but feeling a bit short on funds?
Or perhaps you’re looking for a low-risk way to dip your toes into the market?
There’s a world of options out there, especially if you’re willing to think beyond the traditional four walls and a roof.
Real estate investments come in various shapes and sizes, and one intriguing option gaining traction is carparking spaces.
Investing in a set of painted white lines might sound a bit out there, but it’s all about crunching the numbers.
Whether it’s a single spot or part of a larger complex managed by a company, buying a car space at the right price can offer a low-cost, low-maintenance entry into the property market.
To help investors crunch the numbers on where to park their hard earned cash, Ray White Commercial has provided an in-depth look on how car parks perform across capital cities and where buyers stand to drive home the biggest investment returns.
Here is what the data had to say.
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Thinking of investing but strapped for cash? Buying a car park could be the answer.
BRISBANE
Brisbane CBD retains its position as Australia’s most expensive parking market for the second consecutive year, with daily casual rates now averaging $80.84, surpassing Sydney’s $77.00. This marks a significant shift in the Australian parking landscape, where Sydney had historically dominated as the premium market.
The change reflects broader shifts in office attendance patterns and CBD vibrancy across Australian capital cities as workers continue adjusting their commuting habits post-pandemic.
Brisbane’s pricing strength stems from limited parking supply coupled with stronger office attendance, demonstrated by its relatively contained vacancy rate of 10.2 per cent and positive occupied stock change.
What makes this even more remarkable is that Brisbane continues to command premium parking rates despite the Crisafulli Government making 50 cent public transport fares permanent across all TransLink networks in Queensland.
However, beneath headline rates, Brisbane operators still offer substantial discounts of 55.5 per cent for online bookings and 57.9 per cent for early bird parkers, revealing continued competition for regular commuters despite the market’s apparent strength.
Read the full story here.
MELBOURNE
Melbourne presents perhaps the most concerning trajectory among major markets.
Current daily rates of $64.43 have fallen below 2013 levels ($65.00), producing a negative growth rate over the 12-year period.
This decline mirrors Melbourne’s struggling office market, which maintains the highest vacancy rate among Australian CBDs at 18.0 per cent and continues to experience negative occupied stock change.
Melbourne operators have responded with the country’s deepest early bird discounts at 62.9 per cent, though online discounting remains surprisingly modest at just 15.1 per cent, suggesting a focus on capturing the dwindling population of regular commuters.
Read the full story here.
Individual parking spaces or even entire garages can offer great rental returns.
SYDNEY
Sydney’s market shows signs of recovery but remains below its 2023 peak of $85.05.
With a 12.8 per cent office vacancy rate and positive, albeit modest, absorption figures, Sydney’s parking ecosystem appears relatively balanced but lacks the growth momentum seen before the pandemic.
Sydney maintains significant discounts for both online bookings (-43.5 per cent) and early bird parking (-54.9 per cent), indicating ongoing competition despite the market’s gradual improvement.
Read the full story here.
ADELAIDE
Adelaide has recorded the highest 12-month growth rate in parking at 11.3 per cent, despite a high office vacancy of 16.4 per cent.
Its discounting strategy remains moderate, with 15.5 per cent for online bookings and 37.4 per cent for early bird, indicating a market finding equilibrium.
Read the full story here.
PERTH
Perth continues its steady improvement with 3.8 per cent annual daily rate growth and relatively substantial discounting for both online (-30.5 per cent) and early bird (-44.8 per cent) options.
The best part about owning a car park? They require little upkeep – unlike a house or a unit.
HOBART
Hobart’s parking market has experienced a concerning downward trend, with current rates at $18.83 sitting below 2013 levels ($21.00) and showing a negative 12-year annual growth rate of -0.86 per cent. The market offers modest online discounts of 20.4 per cent but notably provides no early bird options, reflecting its unique position as a smaller capital with limited commuter patterns despite having the lowest office vacancy rate among all Australian CBDs at just 3.6 per cent.
CANBERRA
Canberra presents an interesting case with modest but steady growth in parking rates to $21.64, despite ongoing decentralisation of government departments away from the traditional Civic centre. Operators in the capital offer minimal discounting compared to other markets, with online rates discounted just 9.9 per cent and early bird options at 13.8 per cent, suggesting less pressure to fill capacity despite the 9.2 per cent office vacancy rate.
