Think property prices in Singapore are soaring? Think again.

Because the price of a modest 5-bedroom HDB flat in AMK will get you only a
parking lot in Manhattan, New York.

And yet, buyers are waiting to snap up these lots, which cost US$225,000
($340,000) each, even as many parts of the US is seeing a downturn in the
property market.

Some buyers do not even own cars, but lease the lots to recoup their
investment.

The New York Times reported that space is at such a premium in the crowded city
that these parking lots have become valuable real estate.

There is even a waiting list for these plots. Around eight people are in the
queue to purchase one of five private parking spaces in the basement of an
upcoming condominium development.

The condo developer was reported to have applied for the city's approval to add
four more parking spots.

HIGH DEMAND

And justifiably so, as parking lots in newer developments are selling for twice
the price that they were five years ago according to Mr Jonathan Miller, an
appraiser specialising in the New York residential market.

According to New York real-estate specialist, Miller Samuel, the average
parking space in Manhattan costs US$165,019, which is about US$1,100 psf.

That is close to the average apartment price of US $1,107 psf.

Parking lots in the central areas of Manhattan are the most sought after.

But people are willing to invest in open lots and garages in other areas, such
as Queens, Brooklyn and Harlem. There, the parking lots are going for around US
$50,000.

It was reported that parking lots in a new Brooklyn development were priced at
US $125,000. Mr Miller told The New York Times that the shortage of parking
lots in the city were driving up the prices.

According to his research, less than 1 per cent of all co-op and condominium
buildings in the city have private garages.

Other bustling cities in the US have also seen a spike in the demand and price
of parking lots in condominium developments.In Boston, a lot can go for as much
as US $175,000 and in Chicago, for US$$75,000. However, condos in cities like
Los Angeles and Dallas include parking in their prices.

Selling parking lots are a lucrative source of profit for New York's developers
as they fetch the same per square foot as living space, which is more expensive
to construct.