COLLIERS International's latest annual survey of parking rates in central business districts (CBDs) worldwide reveals that Singapore is still one of the lower-priced cities to park a car, based on average monthly car park rates.
Singapore ranked 13th out of 21 Asia-Pacific cities surveyed, with an estimated median of US$179.24 per month for unreserved parking.
Colliers' survey tracked monthly median unreserved parking rates and daily median parking rates in 140 cities worldwide.
In Singapore dollars, the monthly median car park rates here edged up nominally by 1.5 per cent from $255.00 last year to $258.75 this year.
"The marginal rise - amid the gut-wrenching economy - reflects the supply vis-à-vis demand for season parking facilities in the CBD and underscores the strong dependency some white-collar workers have on their cars, which they see as a lifestyle necessity, instead of a discretionary item," said Tay Huey Ying, director of research and advisory at Colliers International.
Looking at comparable cities in the region, Singapore's carpark rates are much cheaper than Hong Kong's, which topped the Asia Pacific list at a monthly median rate of US$748.20. Sydney took second place with an average monthly rate of US$587.72, followed by Brisbane at US$529.19.
Globally, Singapore ranked 73rd out of the 140 cities surveyed. London City topped the global list with the most expensive carpark rates at US$1,020.29 a month. It is followed by London West End at US$955.51 and Amsterdam at US$805.36.
When looking at the daily median car park rates, however, Colliers finds that drivers in Singapore pay an average of US$21.06 to park their cars in the CBD for a full eight-hour work day - taking Singapore to the 7th position in the Asia-Pacific and the 51st position in the world based on daily rates.
"In Singapore dollars, the daily median parking rate has held steady at the rate from a year ago," Ms Tay said. "Nonetheless, given the weakened consumer sentiment, operators of some commercial buildings - particularly those with retail components - have been observed to be under pressure to lower their daily parking rates, in order to encourage patronage by shoppers who drive."
Looking ahead, there is room for monthly car parking charges to creep up, as demand is set to increase with the completion of mega projects in the new downtown area, even as supply remains limited as new commercial buildings are affected by rules which limit the number of lots.
Daily parking rates, on the other hand, may still continue to fall - led by those at commercial buildings with retail components, Colliers noted.
This article was first published in The Business Times.
