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An Overview of Parking Policy Practices in First-Tier Cities at Home and Abroad


Today, many small and medium-sized cities face significant challenges, including a severe shortage of parking spaces, low turnover rates, an unreasonable pricing structure, lax enforcement, and outdated management practices. Examining the historical evolution of parking‑lot planning and development in cities both domestically and internationally reveals that, initially, efforts to meet growing parking demand largely relied on passively expanding parking capacity. Over time, this approach has evolved to integrate strategic parking‑lot siting with measures to enhance the utilization of existing facilities. Through years of planning, construction, and management, localities have amassed a wealth of experience that offers valuable lessons for others.

 

United States – Supply-Controlled, High Turnover

① Restricting the supply of parking spaces

To strike a balance between parking demand and urban socio-economic development, transportation, land use, and environmental protection, the United States has shifted from setting minimum on-site parking requirements to establishing maximum limits, while also capping the overall supply of parking facilities and imposing moratoriums or outright bans on parking‑related development projects in certain areas.

 

② Control parking service duration to increase parking space turnover.

The United States also regulates the target users and operating hours of certain parking facilities. In commercial districts, the ideal users are those seeking short-term parking, while in residential areas, on-street parking facilities best serve nighttime parkers. On-street parking is intended for brief stops; parking meters are installed at each space, with time limits varying by location—typically one or two hours—with longer durations in more remote areas. License‑plate recognition technology can determine whether a vehicle has exceeded its allotted time and also identify whether it qualifies for extended parking.

 

 

Japan—A car buyer, strict law enforcement

① Improve legislative management and implement a system of purchasing vehicles only when eligible.

Japan introduced regulations on parking‑lot construction, planning, and management at an early stage, ensuring the rationality of land use and spatial planning for parking facilities under the protection of law. These include the Garage Law, the Parking Lot Law, the City Planning Law, the Bus Terminal Law, and the Standard Parking Lot Ordinance, among others. A well‑developed legal framework for parking has provided strong support for the efficient operation of Japan’s transportation system. When purchasing a vehicle, buyers are required to secure their own parking space. The Garage Law stipulates that, at the time of vehicle registration, proof of a designated parking space must be submitted; registration and license issuance are permitted only after on‑site verification by the police. This law was first implemented in Japan’s major cities and, over a period of ten years, was gradually extended nationwide. Under the Garage Law, eligible parking spaces may include a private garage, an open lot, or a fixed parking spot in a public parking facility near the residence, provided that the relevant parking operator issues official certification.

 

② Strict enforcement of parking regulations and high costs for violations

A stringent management approach combined with hefty fines is employed to address illegal parking. Along roadways, any vehicle parked without its driver inside is subject to a ticket and fine; this task is carried out by “parking monitors” from specialized companies, who collect evidence and issue citations. The Metropolitan Police Department has hired a large number of civilian supervisors to tackle unauthorized parking. Fines for illegal parking are steep, typically ranging from 30,000 to 40,000 yen (approximately RMB 2,500–3,000). In addition to imposing substantial penalties, authorities also assign demerit points or record violations in individuals’ personal files. Because parking infractions carry significant point deductions and such records can severely inconvenience daily life, the overall deterrent effect often exceeds that of monetary fines. Following the implementation of this strict policy, results have been striking: illegal parking incidents declined by 81.5% over four years, and average travel time per five kilometers decreased by 10.8%.

 

 

Hong Kong — High fees, limited supply; strict enforcement and rapid turnover.

① High fees, low supply, stable, low demand

Hong Kong achieves a low‑level equilibrium in its parking system through the regulation of parking supply and demand. The 1990 Hong Kong Transport Policy White Paper set the objective of parking management as attaining such a low‑level equilibrium in the provision of parking facilities.

 

In Hong Kong, parking is primarily provided in off-street car parks, with on-street parking serving as a necessary complement to meet short-term parking needs; on-street parking accounts for 4% of all parking spaces. To curb traffic congestion in the city center, Hong Kong deliberately underprovides parking facilities in busy areas and manages vehicle growth by imposing limits on the number of available parking spaces.

 

The total number of parking spaces in non-residential areas generally maintains a ratio of about 1:4 with the corresponding registered vehicles. Meanwhile, the Hong Kong government conducts a systematic study on parking demand and management every three years, using the findings to inform evidence-based policymaking and avoid hasty construction of multi-storey car parks in response to specific parking issues. In addition, parking fees are high; in busy central districts, hourly rates can exceed HK$30, thereby moderating parking demand.

 

② High turnover and strict enforcement constrain on-street parking.

In Hong Kong, on-street parking is metered. To improve parking turnover, meters charge in 15-minute increments, with daytime time‑limited parking available in half‑hour, one‑hour, and two‑hour slots, each distinguished by a different color of meter. Enforcement of illegal parking is handled by traffic police and traffic wardens. When a vehicle remains parked beyond the paid period, the green light on the electronic meter turns red and begins flashing; upon spotting this, officers record the license plate number and affix a ticket. If the vehicle still has not moved after a certain period, a second or third ticket will be issued.

 

 

Beijing — Encouraging investment from social capital and promoting self-governance in parking management.

① Encourage private capital to invest in the construction of parking facilities.

In 2015, the Beijing Municipal Government issued the “Opinions on Encouraging Social Capital to Participate in the Construction of Motor Vehicle Parking Facilities,” which encourages organizations and individuals to invest in, construct, and operate parking facilities through leasing, partnerships, and other arrangements, thereby addressing parking shortages and alleviating traffic congestion. The municipal government prioritizes support for the development of public‑benefit parking facilities in central urban areas—such as Grade‑III hospitals, administrative hubs, and World Cultural Heritage sites—with government subsidies capped at no more than 30% of the project’s total investment. For the construction of parking garages and underground parking facilities, interest‑subsidized loans are appropriately structured; when public facilities build parking lots, they are exempt from land transfer fees and urban infrastructure construction charges, and receive a 50% reduction in green space compensation fees.

 

② Regionally differentiated pricing to regulate parking demand

Beijing was among the first cities to implement differentiated parking pricing: rates in the central urban area are higher than those in the outer districts; on-street parking fees exceed off-street rates; and open-air parking charges are higher than those for covered facilities. Moreover, the city has established short- and long-term pricing schemes aligned with its parking development strategy.

 

③ Community parking management self-governance improves parking order.

In recent years, Beijing has encouraged self‑governance in residential‑area parking management. In the city’s six central districts, 12 model parking‑management communities have been established, standardizing parking‑operation practices and consolidating the achievements of 100 demonstration streets for parking‑order management, while cracking down on illegal parking in accordance with the law. For example, in pilot communities in Chaoyang District, under the community’s leadership, reputable parking‑management companies have been brought in, underscoring the untapped parking potential of older residential areas, reconfiguring parking spaces, setting clear parking‑fee schedules, and electing resident committees to form parking‑management boards that jointly oversee and regulate parking within the neighborhoods. As a result, parking order has improved markedly.

 

 

Shanghai — Coordinated Development, Policy Guidance

Prioritize public transit and pursue coordinated development.

Adhere to the “public transport priority” development strategy and promote green travel. Treat parking management as a key tool for traffic demand management, ensuring adequate provision of basic parking while strictly controlling on-street parking for trips.

 

② Provide categorized guidance and emphasize key priorities.

A parking‑space supply structure will be implemented, prioritizing on‑site provision, supplemented by public facilities, and further supported by roadside parking. Priority will be given to developing public parking infrastructure in areas with acute parking shortages—such as residential neighborhoods, hospitals, and schools—as well as in their surrounding zones, including large integrated transportation hubs and peripheral park-and-ride (P+R) stations for urban rail transit.

 

③ Market-driven operation, policy guidance.

With enterprises as the main actors, accelerate the industrialization of parking facilities, optimize land supply, and mobilize construction funding through multiple channels. Encourage the sharing of parking resources and refine parking‑fee policies.

 

 

Shenzhen — Supply Control, High Turnover

① Develop a clear, priority‑driven plan to guide the construction of parking facilities.

Based on the special plan for parking facilities and in light of the solicited parking project proposals, a batch of parking projects has been identified, screened, and prioritized, and a citywide three-year rolling implementation plan for parking facilities has been formulated in a coordinated manner.

 

② Strengthen land and spatial planning to promote intensive and efficient land use.

In urban renewal projects located in areas where parking supply and demand are particularly imbalanced, public parking facilities should be incorporated, making full use of the space freed up through comprehensive environmental improvements in “urban villages” to expand the supply of public parking. Planning and land-use management policies should be refined to promote mixed‑use development.

 

③ Streamline approval procedures, clarify workflows, and enhance efficiency.

Public parking facilities may be added in the underground spaces of public amenities such as hospitals, schools, plazas, tourist attractions, integrated transportation hubs, and bus terminals, without requiring adjustments to the designated land use or floor area ratio. For independently submitted parking projects, classification and approval procedures shall be streamlined according to whether they are categorized as special‑purpose equipment or building structures.

 

④ Promote informatization and smart technologies to enhance service and management standards.

Develop a smart parking cloud‑platform system and establish a citywide, unified technical standards framework for such platforms. Employ market‑based, administrative, and legal measures to progressively integrate all types of parking facilities across the city into the smart parking cloud platform, facilitate data exchange and sharing among administrative agencies, and achieve comprehensive networked connectivity of citywide parking information. In line with the top‑level design requirements for new‑type smart cities, ensure seamless data integration between the smart parking cloud platform and the city’s urban operation and management service platform.