A garage located in the posh district of Chelsea in London will be auctioned later this month for a price of $261, 567 or £180,000 or higher. The high price tag should not come as a surprise as real estate value in the area continues to rise.
According to Yahoo Real Estate, real estate agents at Savills claim that a garage with 146 square feet of space and secure parking lot is hardly ever available. Over the years, garages in London have had good values. The average house in England and Wales which cost £188,270 is close to the price of the garage, as revealed by the records of Land Registry House Price Index. In December, the value of houses in London rose to £514,097.
"Garages are an increasingly rare commodity in central London, where even some of the highest value properties lack off street parking," Chris Coleman-Smith, head of Savills auctions, said in a news release.
In an interview with CNBC, a London-based buying agent, Henry Pryor, said that it is a bit shocking to know that the value of a garage surrounding London and other counties is almost equal to the regular value of homes in the United Kingdom.
"Clearly people are prepared to pay an awful lot of money in order to garage their - usually - very expensive motor cars," he said.
Halifax Price Index, U.K. reveals that the prices of houses even outside London are continuously rising. The regular UK house price reportedly increases its price by 9.7% yearly, mostly in months between November and January. It is said that the constant imbalance on the supply and demand trend contributes much on the upsurge of house prices in London. The trend is expected to continue in the upcoming months.
