A woman in China who bought 196 parking spots in an apartment complex, rented them out for profit and then resold them at a steep markup has prevailed in court after residents sued to block the sales. The court ruled there was no legal basis to restrict bulk purchases of parking spaces.
The story spread widely on Chinese social media and sparked debate, according to the South China Morning Post, which reported the story Wednesday (local time).
The case unfolded at an apartment complex in Changsha, Hunan Province. Completed in 2018, the complex was initially seen as a poor investment — the surrounding area lacked shops, schools, public transit and other basic amenities, leaving demand for both apartments and parking spaces low.
A woman identified only by the surname Wu saw things differently. After studying local government development plans, she concluded the area's value would rise and spent 14 million yuan ($2.09 million) to purchase 196 parking spots at once — roughly 40 percent of all the spaces in the complex.
Other residents had the opportunity to buy parking spaces at the time but few chose to do so.
Wu's bet paid off. Development in the surrounding area accelerated, apartment pre-sales picked up, more residents moved in and demand for parking jumped.
Wu installed locking devices on her spaces to prevent unauthorized use and rented some of them out at 500 yuan a month — about twice the rate the developer had set in 2018.
Residents called for the rent to be lowered to 300 yuan a month, but Wu refused. She then listed the spaces for sale at around 100,000 yuan each, with some priced as much as 80 percent above her original purchase price.
Residents pushed back, arguing Wu should resell the spaces at roughly the same price she had paid for them.
Local government officials attempted to mediate but failed to broker a deal. A group of residents ultimately filed a joint lawsuit asking the court to void the purchase contract between Wu and the developer.
A Changsha court ruled in Wu's favor in February 2024.
The court found that the developer had offered the spaces for sale and given residents the chance to buy them, but they had declined. It also noted that Wu had raised her own funds and taken on the market risk of a bulk purchase at a time when the area's future was uncertain. In addition, the court found no regulation limiting how many parking spaces a single individual may own.
betterj@heraldcorp.com
