Normal things are quite expensive in Hong Kong. Don’t believe me? Well then maybe this $1.3 million parking spot will change your mind. In a place that is equally cramped and wealthy space is an incredibly valuable resource. That’s why somebody purchased the world’s most expensive parking space in an affluent Hong Kong neighborhood known as The Heights.
Now I don’t have $1.3 million and chances are you don’t either, but let’s just say we somehow fall into this new money and we need to spend it. I’m heading towards the nearest Porsche dealership to pick up a lightly used 991.2 Porsche 911 GT3 and then to the bank to save the rest. What are you doing with this money? Well, that is of course up to your preferences.
Prices are all determined by supply and demand. The level of demand is determined by the amount of money individuals are willing to pay for a specific good at a price point. Usually, as price increases, demand will fall. At the same time, lower price levels usually yield a smaller supply as suppliers are less willing to provide a specific good at a lower price. As price increases, however, supply is sure to follow as companies are more inclined to provide a good at a higher price.
The law of supply and demand is all fine and good for products that can be manufactured. Sadly, land and or space is something we cannot make in a factory. At $1.3million I’m sure there are thousands of people who would like to sell a single parking space, however, they cannot make a parking space from raw materials.
That’s how we arrived at a $1.3 million parking space. Supply will never increase however demand continues to rise. There’s a chance the owner of this space could find work elsewhere and sell their prized parking spot at a profit which is of course mind-bending in its own right.