Here’s an interesting nugget of information from Melbourne City Council’s new Transport Strategy – there are 4,190 parking spaces in Melbourne’s CBD, of which 3,077 are metered. There are however more than 60,000 off-street parking spaces “in the centre of the city”. That means on-street spaces account for just 6% or so of all city centre parking.
This suggests that in the CBD at least, on-street parking is not that important in the overall scheme of things. It’s currently used solely for short-term parking, but commercial parking stations can also perform that function. Indeed, they’d probably prefer the higher income that comes with rapid turnover. Car storage is a remarkably low value use for such premium land. Even in the case of the metered spaces, the price charged is well below the value the land could theoretically fetch in some alternative use.
According to Greville Pabst, chief executive of valuers WBP Property Group, a “car space in a typical city apartment can add from $40,000 to the purchase price and, in some instances, for upmarket apartments in good locations, it can add more than $100,000 to the price tag”. Even in inner city residential areas, the Mayor of the City of Yarra estimates a parking space adds about $50,000 to the value of an inner-city property. In Sydney’s CBD a garage costs as much as $120,000 to $150,000.
There is an opportunity here to do away with all or most on-street parking in the CBD and instead use the space for something more valuable. It could be used for high capacity vehicular modes like buses, trams and motorcycles; for highly valued sustainable modes like cycling, walking or shared car schemes; or for amenity-enhancing uses that could take advantage of ground level proximity to pedestrian traffic.
Parking spaces could be dedicated permanently to new uses – for example a cafe. Given an unrestricted brief, businesses would come up with innovative ways to use these narrow spaces for other purposes. Manhattan’s “pop-up” restaurants provide an interesting take on possible alternative uses.
Of course Council could simply start charging parking fees that reflect the real value of the land, hopefully with a demand-responsive tariff. Prices would presumably be relatively similar to what commercial parking operators charge – somewhat less because they’re not protected from the weather or supervised, but somewhat more for those that are a bit closer to the action. It would need to be examined closely but my view is the social value of alternative uses would still be higher. Read the rest of this entry »