A parking space in San Francisco was sold for as much as $82,000. That is almost $1,000 for every square foot as the parking space located in the trendy South Beach neighborhood of the city measures 8 by 12 feet. The price is on the higher side because of its premium location. The space is in an enclosed garage in a condominium building near the San Francisco Giants’ ballpark. San Francisco Chronicle that carried a report regarding the transaction tried to connect to the unidentified buyer for an interview but did not receive any response. However, a Porsche SUV was parked in the slot the next day.
Parking Spots in South Beach Area Can be Rented Out for $400
The transaction is a good indicator of the rising real estate market in the San Francisco area. The real estate agents believe that parking spaces also provide a good investment avenue in the densely populated city. The vehicle spaces also command a premium depending on its location. It adds as much as $100,000 to the purchase price of a property but can be rented out at rates ranging between $400 and $450. The South Beach area commands premium rates. The parking space in question was practically grabbed as soon as it hit the market. Sean Sullivan who handled the sale for Climb Real Estate, confirmed that the Parking space was in the market for only two weeks before it was taken.
The Home Prices In San Francisco are 30% Higher than Last Year
The real estate prices in San Francisco have been rising steadily. The prices of residential properties registered a growth of 22.2% in March as compared to the prices in the same month last year. Standard & Poor have released a home price index last month and San Francisco is right on top in terms of growth second only Phoenix. The San Francisco Bay Area has consistently registered a double digit price increase over the past 12 months. According to a study conducted by Data Quick the median price for new and existing houses and condominiums was ruling at $519,000 in May which is 30% higher than last year. According to new regulation the builders can provide only one parking space per unit. However, this building is old and even allows non residents to own a spot. The new buyer who paid in cash for the deal will also have to pay the property taxes and homeowner association dues.