A woman in central China has sparked outrage among residents after purchasing 196 parking spaces for 14 million yuan (US$2 million) and later attempting to sell them at hefty mark-ups.
A woman in central China has sparked outrage among residents after purchasing 196 parking spaces for 14 million yuan (US$2 million) and later attempting to sell them at hefty mark-ups. Her bulk purchase, which accounted for 40 per cent of a residential community’s total parking inventory, triggered a legal battle with residents struggling to find affordable parking.
The dispute revolved around a residential complex in Changsha, Hunan province, whose name has not been disclosed. The property project was completed and put on the market in 2018. However, its prospects initially appeared bleak, with the absence of essential public amenities, including shops, schools and convenient public transport, discouraging potential buyers.
As a result, both apartments and parking spaces attracted little interest, according to Hunan TV.
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Despite the lacklustre demand, a woman surnamed Wu spotted a potential investment opportunity and purchased 196 parking spaces in a single transaction for 14 million yuan. Facing severe financial constraints, the developer agreed to the massive deal. Wu reportedly made the bold investment after studying regional development plans released by local authorities.
While others remained sceptical about the neighbourhood’s future, she was confident that the area would eventually experience substantial growth. Her bet paid off. The neighbourhood developed rapidly, apartments in the residential complex were snapped up, and demand for parking spaces surged.
As parking became increasingly scarce, Wu moved to protect her investment by installing parking locks to prevent residents and other motorists from using her spaces without permission. She subsequently began renting out some of the spots for 500 yuan (US$75) per month each, effectively doubling the original rental rate set by the developer in 2018.
However, when residents requested that she reduce the monthly rent to 300 yuan, Wu refused to budge. She later put the parking spaces up for sale at approximately 100,000 yuan (US$15,000) each, with some reportedly priced as much as 80 per cent above their original values. The steep asking prices further fuelled residents’ anger, with many insisting that the spaces should be sold at their original rates.
With parking becoming harder to find, Wu’s investment strategy soon turned into a bitter neighbourhood dispute. Residents accused her of taking advantage of the shortage to maximise her profits, while a government official was sent to mediate the escalating conflict.
However, the intervention failed to resolve the standoff. Eventually, an undisclosed number of residents joined forces and took Wu to court.
The residents argued that parking spaces were an essential part of residential infrastructure and should not be monopolised by a single individual seeking to profit from resale. They urged the court to annul the purchase agreement between Wu and the developer. However, the legal challenge suffered a setback in February 2024, when a local court in Changsha ruled in Wu’s favour.
The court observed that when the developer initially offered the parking spaces for sale, residents had the opportunity to purchase them but chose not to exercise that right. Wu, on the other hand, took the risk by arranging the necessary funding and committing to the investment when demand was weak.
The court therefore deemed her bulk purchase legal, noting that no law restricts the number of parking spaces an individual can own.
The ruling effectively upheld Wu’s right to retain her investment, despite mounting resentment among residents over the soaring cost and limited availability of parking in their community.
