Situation around parking in downtown Kitchener and uptown Waterloo is getting more challenging. One of the reason is that many parking lots are being sold to developers for future condominium projects. Availability for parking in core areas of Kitchener and Waterloo is shrinking, so the demand is going up.
The municipality in search of alternatives started looking for parking facilities at condominiums. In many cases, parking spaces, both underground and outdoor are sitting empty during the day hours. The option that will allow to share parking spots by different people during different times of the day is getting more and more popular.
Example where this experiment works well is the One Victoria condo. This practice to share parking spaces is going to be used at other mixed-use projects of local developers.
Today we are no longer surprised to see parking spots offered for sale through MLS System. The same as condo units, parking spaces and condominium lockers create a segment in real estate market that was unheard until recent years. Picture is changing, and parking turning into valuable part of the asset. We saw already transactions where parking spots changed hands in Kaufman lofts, 64 Benton condo. Prices varied between $20K and $27K per spot during the last couple of years. Most of new condominium projects that came to the market does not include a parking space into a purchase price at all. Developers offer it as a separate option to buy due to the fact the number of parking spots is fewer than number of units in the building. No surprise we can see a great increase in the price of parking. Price for a spot starts from $40K+!
Some condo owners who don’t drive look at this as an opportunity to make extra cash. Though they should be warned that some condominiums have restrictions who a parking spot can be sold to. Owners are advised to check the condominium rules before to start sale or to hire a realtor who will do all the job. Another thing to remember is a unit without a parking spot will definitely lose value at a future resale.
If you are thinking to move in or to move out, and decide you’d like some professional advice, we would love to hear from you. We, realtors, have our fingers on the pulse of the market.