Woman buys 196 parking spaces for Rs 20 crore, residents sue after she doubles rental charges

A woman in China’s Hunan province has won a legal battle against residents who challenged her bulk purchase of 196 parking spaces in a residential complex, arguing that her resale and rental practices worsened a shortage of parking. A court in Changsha ruled in her favour in February 2024, holding that her purchase was legal and that no law limits the number of parking spaces an individual can own.

The case has drawn renewed attention on Chinese social media in late September, reigniting debate over whether individuals should be allowed to buy large numbers of parking spaces in residential communities and profit from rising demand.

According to SCMP, the residential project, whose name has not been disclosed, was completed and put on the market in 2018. At the time, the area lacked basic public amenities, including shops, schools and convenient public transport. The limited facilities made prospective buyers wary, resulting in weak demand for both apartments and parking spaces.


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Woman buys 196 parking spaces in one transaction

Amid the subdued interest, a woman surnamed Wu purchased 196 parking spaces in a single transaction for 14 million yuan ((Rs 19.36 crore) ). The purchase accounted for 40% of the project's total parking inventory.

The developer, which was facing severe financial constraints, agreed to the bulk purchase. Wu reportedly made the investment after studying local government development plans and anticipating that the area would grow.

Her assessment proved accurate as development gathered pace, homes in the residential complex sold quickly and demand for parking spaces increased.

To protect her investment, Wu installed parking locks to prevent others from using the spaces without permission. She also began renting out some of them for 500 yuan (Rs 7,258) per month, twice the original monthly rental price set by the developer in 2018.

Wu declined requests from residents who wanted the rent reduced to 300(Rs 4,334)yuan a month.

She later offered the parking spaces for sale at around 100,000 yuan (Rs 14.52 lakh) each, with some listings reportedly priced as much as 80% above their original values. Residents struggling to find parking objected to the prices and argued that Wu should sell the spaces at their original rates.

Residents take dispute to court

The growing resentment prompted a government official to attempt mediation, but the effort failed to resolve the dispute.

An undisclosed number of residents subsequently formed a group and filed a lawsuit against Wu. They argued that parking spaces were an essential part of residential community infrastructure and should not be monopolised by an individual seeking to profit from resale.

The residents asked the court to annul the purchase contract between Wu and the developer.

However, a local court in Changsha ruled in Wu's favour in February 2024. It noted that the developer had offered the parking spaces to residents when they were first put up for sale, giving them an opportunity to purchase them.

The court observed that the residents had chosen not to buy the spaces at the time, while Wu had secured the necessary funds, made the investment and assumed the associated market risks.

It therefore found her bulk purchase lawful, noting that no law prohibited an individual from owning multiple parking spaces.

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Chinese social media divided over ruling

The dispute resurfaced online in late September, prompting sharply contrasting reactions from Chinese social media users.

Some defended Wu's decision, arguing that she had acted within her rights and taken a financial risk when demand for the parking spaces was uncertain.

“There is nothing wrong with this woman. The developer did ask other residents if they wanted to buy, but they chose not to,” one user commented in support of Wu.

Another praised her business acumen, writing: “This woman is wealthy and evidently astute.”

Others, however, argued that parking facilities in residential communities should primarily serve the needs of residents rather than become an opportunity for individual investors to make profits.

“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,” another user wrote.