Sued for buying 196 apartment parking spaces

After investing 2 million USD to purchase 196 parking spaces in a struggling apartment project and later reselling them, ms. Wu from Hunan province faces a lawsuit from residents demanding contract cancellation.

In 2018, an apartment complex in Changsha city, Hunan province, was completed but struggled to attract buyers due to a lack of schools and transportation infrastructure. Slow apartment sales meant the parking lot also went unnoticed.

As the developer ran out of capital, a woman identified as Ms. Wu decided to spend 14 million CNY (approximately 2 million USD) to buy 196 parking spaces, accounting for 40% of the project's total capacity. Ms. Wu made the investment, confident in the local government's urban expansion plans.

In the following years, as the area's infrastructure developed and all apartments sold, demand for car parking surged. Ms. Wu promptly installed locks at her purchased spots. She leased some spaces for 500 CNY (75 USD) per month, double the original price. When residents requested a reduction to 300 CNY, she declined.

The owner of the 196 parking spaces then offered them for sale at around 100,000 CNY (15,000 USD). Some prime locations were priced up to 80% higher than their 2018 value.

This situation angered the resident community. They argued that Ms. Wu exploited the scarcity of essential infrastructure for profit, while many residents struggled to find parking. A group demanded she sell the spaces back at the original price.

After local authorities failed to mediate, the group of residents filed a lawsuit, asking the court to void the sales contract between Ms. Wu and the developer. The plaintiffs argued that parking is essential infrastructure and should not be monopolized by an individual for profit.

At the trial in early 2024, the local court ruled in favor of Ms. Wu. The court determined that when the developer first offered the spaces for sale, all residents had the option to buy but declined. Ms. Wu proactively invested her capital and accepted the risk when the project's prospects were uncertain. Chinese law also does not limit the number of parking spaces an individual can own. The transaction was entirely legal.

The incident sparked debate on Chinese social media amid the ongoing problem of car parking scarcity. A report by Renmin Ribao (People's Daily) in august 2026 showed that in many urban areas, residents compete for spots, parking on fire lanes or lawns, causing safety hazards and damaging neighborly relations.

Many supported the court's ruling, asserting that Ms. Wu demonstrated investment foresight and residents must accept market rules. Conversely, many criticized legal loopholes, creating unfairness when parking spaces were held vacant for price increases while actual residents lacked access to the utility.

In Vietnam, disputes over car parking rights are also common in many apartment complexes. According to the current Housing Law, car parking spaces are not considered common property of residents. The developer has the right to decide whether to sell, lease, or manage the car parking area, and buyers have private ownership of this asset.