SHANGHAI: A woman in central China invested 14 million yuan (US$2 million) to acquire 196 parking spaces in a residential community, later selling them at a significant mark-up, which led to furious residents suing her.
The lawsuit centred around a residential block, the name of which was not disclosed, located in Changsha, Hunan province.
The property project was completed and put on the market in 2018. At the time, many were sceptical about the community’s prospects due to a lack of essential public facilities such as shops, schools, and public transport options. Consequently, there was little interest in both the flats and the parking spaces, according to Hunan TV.
Despite this pessimism, a woman surnamed Wu snapped up 196 parking spots in a single transaction, representing 40 per cent of the project’s total parking inventory, for a sum of 14 million yuan. The developer, facing severe cash constraints, agreed to her purchase.
Wu expressed confidence in the community’s future growth after reviewing the regional development plans issued by local authorities.
As she anticipated, the area experienced rapid development, resulting in the swift sale of homes within the block and a surge in demand for parking spaces.
To safeguard her investment, Wu installed parking locks to prevent unauthorised use of her spaces.
She began leasing some spots at 500 yuan (US$75) each per month, effectively doubling the original rental price set by the developer in 2018. She declined requests from residents seeking a reduction in rent to 300 yuan.
Subsequently, she listed her parking spaces for sale at about 100,000 yuan (US$15,000) each, with some priced up to 80 per cent higher than their original values. Many residents felt Wu should sell them at the original rates.
Wu’s actions incensed local residents who struggled with a shortage of available parking.
A government official was dispatched to mediate the dispute, but his efforts proved ineffective.
An undisclosed number of residents formed a collective to bring Wu to court.
This group contended that parking spaces are integral to a community’s infrastructure and should not be monopolised by an individual profiting from resale.
They urged the court to annul the purchasing contract between Wu and the developer.
In February 2024, a local court in Changsha ruled in favour of Wu.
The court stated that when the property developer offered the parking spaces for sale, all residents had the opportunity to buy them but chose to forgo that right.
Instead of adopting a wait-and-see approach, Wu seized the opportunity by securing funding and assuming the market risk on her own.
Consequently, her bulk purchase was deemed legal, with the court noting that no law restricts the number of parking spaces one individual may own.
The case gained renewed attention on social media in China in late September, stirring considerable online debate.
“There is nothing wrong with this woman. The developer did ask other residents if they wanted to buy, but they chose not to,” one online user supported Wu.
Another person commented: “This woman is wealthy and evidently astute.”
Conversely, a user argued: “Parking spaces in a community should prioritise meeting the needs of its residents. It’s unjust that many spots remain vacant while others struggle to find parking. I suggest the court annul Wu’s purchase contract.” - South China Morning Post
