The hidden cost of "free" car parking in gated communities

Almost every gated community brochure says the flat comes with "free car parking". Somebody paid to dig the basement, waterproof it, light it and ventilate it. That somebody is you, through the price per square foot and later through the monthly maintenance bill.

What "free" means on the cost sheet

Under RERA, open parking areas are part of the project's common areas, which belong to all the owners together, so a builder cannot sell an open slot to you as a separate item. Covered and enclosed parking is treated differently, and you will see builders handle it in two ways. Some list a car parking charge as its own line on the cost sheet. Others show no charge and recover the construction cost through a higher rate per square foot.

In the second case every buyer pays for parking, including the household with no car. This is one reason two projects in the same area with similar specifications can be priced noticeably apart: one of them has two or three basement levels to pay for.

So when you compare projects, ask for the all-in price with parking included, and compare that.

Open, stilt and basement parking

Open parking costs the builder least. Your car sits in the sun, rain and dust, and resale buyers tend to mark the flat down for it.

Stilt parking is at ground level under the building. The car is covered and easy to reach. The trouble comes later, when families add a second car and a badly planned stilt floor gets crowded.

Basement parking is the most expensive to build. It needs deep excavation, soil stabilisation, waterproofing, ventilation, fire safety equipment and drainage pumps to keep water out. You get marked slots, better security and a car that stays out of the weather.

The cost of a basement does not end at construction. The lights, exhaust fans, pumps, fire systems and cameras run all day, every day, and the residents pay for them.

What it does to your maintenance bill

A project with large basements uses more common-area electricity and needs more upkeep than one with stilt or open parking. That shows up in the monthly maintenance charge for as long as you own the flat.

Most buyers compare only purchase prices. Ask each project for its current or estimated maintenance charge per square foot and work out the yearly figure. A flat that costs a little more to buy and less to run can be the cheaper one over ten years. So can the reverse.

Parking and resale

Covered, secure parking is now something resale buyers expect. A flat with an awkward slot, a steep ramp or a long walk from car to lift sells slower.

What resale buyers do not do is pay you back for what the basement cost to build. They look at whether the slot is easy to use and what the maintenance bill is. This is also why two identical flats in the same community can sell at different prices: one has the better slot.

What to ask before you book

• Is the slot open, stilt or basement, and on which level?
• Is a specific slot allotted to your flat in writing, or can the association reassign it later?
• Is there a separate parking charge on the cost sheet, or is it inside the per square foot rate?
• What does a second slot cost, and will one be available?
• How does the agreement describe the parking area: as part of your unit, or as a common area you have a right to use?
• What is the maintenance charge, and how much of it is basement running cost?

Go and see the slot before you sign. Drive down the ramp if you can. Give parking the same attention you give the floor plan.

If you want help comparing the full cost of two or three projects, parking included, talk to a relai advisor.