According to the information from the Ministry of Communication, Guangzhou (GZ), there are 500,000 cars in the town center, but with only 280,000 parking units. The current standard in the world is 1.4 parking units per car. That is to say Guangzhou needs another 420 thousand parking units.

What is more, the number of private cars is increasing everyday. There are about 300 new cars on road everyday, with the maximum as 500 a day.

The original investment cost of a multi-storey car park in town is about 100,000 yuan. Suppose a parking unit can earn 5 to 10 yuan per hour, three times a day, one-day income is 15 to 30 yuan, the profit of one parking unit excluding tax is about 20 yuan a day. The profit is much lower than that of investing into build up a commercial construction. It explains why few investors want to involve themselves in this business.

Base on all these situations, Guangzhou Ministry of Communication publishes serial of favorable policies for car park construction. The government will also support the business operators in practical way. For example, the government will invest in infrastructure construction of commercial car parks and then grant operating and management rights to involved companies.

To build up a multi-storey commercial car park with hundreds parking units requires millions yuan. So the government encourages operators to choose undeveloped places from a cost-saving angle.

More favorable policies are coming out soon. Experts think that it will urge rapidly the car-park investment market.

Editor: James