A woman in China bought 196 parking spaces in a residential community for US$2 million (Rs 19.36 crore) when few people were interested in them. Years later, as demand for parking increased, she began renting them out at higher rates and put some up for sale at a significant markup. Her decision angered residents, who took her to court over the bulk purchase and resale of the parking spaces, reported the South China Morning Post.
The dispute took place in a residential community in Changsha, Hunan province.
According to Hunan TV, the project was completed and put on the market in 2018. At the time, many people were doubtful about its future because it lacked essential public facilities such as shops, schools and public transport options.
As a result, there was little interest in buying both flats and parking spaces.
However, a woman surnamed Wu decided to invest in the property after reviewing regional development plans issued by local authorities.
She purchased 196 parking spaces in a single transaction for 14 million yuan (around Rs 20 crore), accounting for 40 per cent of the project’s total parking inventory.
The developer, which was facing severe financial difficulties, agreed to the deal.
Wu was confident that the area would develop in the future, and her expectations eventually came true.
The neighbourhood developed rapidly, homes in the residential block sold quickly, and demand for parking spaces increased.
To protect her investment, Wu installed parking locks to prevent others from using her spaces without permission.
She began renting out some of the parking spaces for US$75 (Rs 7,258) per month, double the original monthly rental price set by the developer in 2018.
When residents requested that she reduce the rent to 300 yuan (Rs 4,334), she refused.
Wu also listed her parking spaces for sale at around US$15,000 (Rs 14.52 lakh) each. Some were priced up to 80 per cent higher than their original values. Many residents believed she should sell the spaces at their original rates.
Her decision angered residents who were already struggling to find available parking spaces. A government official was sent to mediate the dispute, but the efforts failed to resolve the matter.
An undisclosed number of residents then joined together to take Wu to court. They argued that parking spaces were an essential part of a residential community’s infrastructure and should not be monopolised by one person seeking to make a profit through resale.
The residents asked the court to cancel the purchase contract between Wu and the developer.
In February 2024, a local court in Changsha ruled in Wu’s favour.
The court stated that all residents had been given the opportunity to purchase the parking spaces when the developer put them up for sale, but they had chosen not to exercise that right.
Wu, meanwhile, had decided to invest in the spaces instead of waiting to see how the property market developed. She arranged the necessary funds and took the market risk herself.
The court therefore ruled that her bulk purchase was legal. It also noted that there was no law restricting the number of parking spaces an individual could own.