Chinese woman snaps up nearly 200 parking spaces to flip to neighbours for profit
A woman in central China invested 14 million yuan (US$2 million) to acquire 196 parking spaces in a residential community, later selling them at a significant mark-up, which led to furious residents suing her. The lawsuit centred around a residential block, the name of which was not disclosed, located in Changsha, Hunan province. The property project was completed and put on the market in 2018.…
A Chinese woman named Wu acquired nearly 200 parking spaces in a residential community in Changsha, Hunan province, for the purpose of reselling them at a considerable profit, causing outrage among nearby residents who sued her. The lawsuit targeted a residential block in the community, with the specific name remaining undisclosed.
The project was finalized and made available for purchase in 2018. At that time, the area's development plans were viewed with skepticism due to the lack of basic amenities like shops, schools, and public transportation, leading to minimal interest in both the housing units and the parking spaces.
Wu, determined to capitalize on the project's potential, purchased 196 parking spaces, which accounted for 40 percent of the total inventory, for a total of 14 million yuan. The developer, burdened by financial difficulties, agreed to the transaction. Wu expressed confidence in the future growth of the community, based on the development plans released by local authorities.
Her prediction proved accurate, as the neighborhood quickly developed and created a high demand for parking spaces, prompting her to install locks to prevent unauthorized use and start leasing some spaces at double the original rates set by the developer.
Despite residents' requests for a reduction in rent, Wu maintained the higher prices and subsequently listed her parking spaces for sale at approximately 100,000 yuan each, with some reaching up to 80 percent above their initial value. The situation infuriated the local residents, who were already facing a shortage of parking spots.
A government official was assigned to mediate the dispute, but his attempts were unsuccessful. A group of residents formed a collective to take Wu to court, arguing that parking spaces are essential infrastructure for a community and should not be monopolized by an individual profiting from resale. They demanded the court invalidate the contract between Wu and the developer.
In February 2024, a local court in Changsha ruled in favor of Wu. The court determined that when the developer offered the parking spaces for sale, all residents had the opportunity to purchase them but opted not to. Wu seized the opportunity by securing funding and assuming the market risk independently. Her bulk purchase was deemed legal, as there was no law restricting the number of parking spaces one person could own.
The case gained renewed attention on Chinese social media in late September, igniting a heated online debate. Some users defended Wu, stating that the developer had given residents the chance to buy but they declined. Others praised Wu for her wealth and astuteness, while others argued that parking spaces should prioritize residents' needs and that Wu's actions were unjust.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
