THE STUDY OF A PRIVATE CARPARK

Abstract

Private developers are generally profit motivated and the desired investment is one which yields the highest return. Particularly in the central area where land values are high, one would aim to maximise floor space in order to maximise returns. Hence, more often than not, the allocation of space for parking is minimal. The fact being that alternative uses would fetch higher return. Provision of carparks is deemed non profitable and a statutory obligation.

However, carpark can be considered as an ancillary facility. Besides being a revenue generator, it serves as an enhance¬ ment to the development giving intangible benefits such as increased sales, higher rentals etc. In this sense, carparks are not necessarily non-profitable. The profitability of a carpark depends on a variety of factors of which the more obvious ones are the location, building use, the management system and pricing of the carpark. These factors affect the demand for parking space in one way or another. Once a carpark is built, the location and the building use are fixed; thus the probable way to improve carpark performance is through the management system and pricing has a significant influence on the profitability. From the study of a private carpark, a one percent increase in parking charges brought about a corresponding increase of 0.57 percent and 1.27 percent for hourly and season parking collections respectively. Although these figures are limited to this particular case study, they are nonetheless indicative of the degree of influence on the performance of the carpark.