Slowdown drives fall in CBD parking costs
August 4, 2010
THE economic slowdown has benefited the city's car-driving commuters, with daily rates for parking in Melbourne down 17 per cent in the past two years.
The annual Colliers International global central business district parking rate survey shows the median price for a daily unreserved spot in Melbourne is $US29.61 ($A32.47), a 17 per cent decline from $US35.69 in mid-2008.
Sydney has dipped 6 per cent to $US51.18 compared with $US54.47 in 2008, but Brisbane's rate fell 21 per cent, from $US37.56 to $US29.61.
Australian CBD parking prices ranked in the world's top 50. Abu Dhabi is the most expensive at $US55 a day, with Oslo second at $US54.52, Tokyo third at $US54.50, London City fourth at $US52.50 and Sydney fifth at $US51.18. In contrast, the cheapest city to park is Chennai in India at US96¢ for the day.
When looking at monthly parking rates, London City and London West End topped the list at $US932.99 and $US873.50 respectively. Sydney and Perth took out fifth and sixth spots for most expensive monthly rates at $US591.28 and $US563.37.
Colliers' director of research, Nerida Conisbee, said the survey was a good indicator of CBD demand because it closely tracked employment and shopping.
The global financial crisis increased CBD office vacancies, and fewer workers came into the city. 'When demand declines, prices drop," she said.
Daily rates fell, but monthly median rates took an even greater hit, decreasing by more than 20 per cent in all three major eastern-state CBDs. "The rate of decline was probably more pronounced in the monthly rates as, during the GFC, we saw a particular trend of decreasing full-time employment rates and increasing part-time employment," said Ms Conisbee.
"As full-time employment levels drop, the need for a monthly parking spot declines. Part-time workers are more likely to just rely on daily parking requirements."
In contrast, daily and monthly parking rates in Perth and Adelaide strengthened, with the daily rate in both cities growing by 7 per cent since last year.
Ms Conisbee said the figures suggest parking rates had become cheaper in many cities, although a stronger dollar probably exaggerated the findings.