Cheng Shidong: China’s Policies on Urban Parking Development

I. The Root Causes of Parking Difficulties and Illegal Parking in Chinese Cities

 

 

1. The primary reason for the difficulty in finding parking is the mismatch between the number of vehicles and the availability of parking spaces.

 

According to estimates, the nationwide shortage of parking spaces—though no precise statistics are available—is substantial.

 

The vehicle-to-parking-space ratio in European and American countries is generally The ratio is 1:1.2 to 1:1.4, whereas in China’s major cities it typically stands at around 1:0.7; in medium- and small-sized cities, compliant parking spaces are even scarcer. On average, each vehicle lacks 0.5 parking spaces.

 

As of By the end of 2018, the national vehicle stock had reached 217 million, with privately owned passenger cars accounting for 170 million. Based on these figures, the total parking space shortfall is estimated to exceed 80 million spaces.

 

Shenzhen’s situation, according to the “Shenzhen Parking Comprehensive Survey Report”: the city’s total number of passenger cars is… 3.18 million vehicles, with approximately 1.916 million marked parking spaces for passenger cars (a ratio of 1:0.6), of which 1.645 million are planned and implemented (a ratio of 1:0.52). Residential parking and mixed-use properties with residential components account for 1.355 million spaces (a ratio of 1:0.43), leaving a shortfall of 1.825 million; travel‑related parking stands at 561,000 spaces (a ratio of 1:0.18).

 

Beijing situation: According to the data from Beijing’s parking resource census, as of… At the end of 2016, the city had a total of 4.27 million parking spaces, of which 3.82 million were located in urban areas (including 2.19 million residential spaces). Nighttime parking demand in urban areas was 3.84 million vehicles, matching the number of vehicles. The ratio of vehicles to residential parking spaces in urban areas was 1:0.57 (citywide: 1:0.63), while the ratio of vehicles to on-street parking spaces was 1:0.42.

 

2. Main manifestations of illegal parking

 

Encroaching on non-motorized vehicle lanes and occupying public spaces;

It affects traffic, as well as other aspects of public order and public safety.

 

3. Root Cause

 

The automotive industry policy that once encouraged car purchases?

Are the existing parking provision standards too low?

Long-term lax law enforcement has led to public… There is insufficient awareness of “parking availability.”

 

4. How to Understand Parking

 

Parking is an indispensable part of owning and using a passenger car and should be fully borne by the vehicle’s owner and user. Parking is not a basic public good or service, and the government has no obligation to provide it.

 

Ensuring orderly and standardized parking and fostering a sound public order are among the government’s core responsibilities.

 

II. Should we undertake large-scale construction to address the parking shortage?

 

 

1. Parking from the Perspectives of Urban Development and Transportation

 

Each car parking space At 30 square meters, this size is comparable to the current per capita housing area and consumes substantial resources. Within a residential community, should parking be prioritized, or should space be allocated to greenery and recreational areas? This is a matter of subjective judgment, and reaching a consensus is often difficult.

 

Urban transportation should prioritize public transit and green modes of travel, with private cars used judiciously. From the perspectives of urban development intensity and road resources, 10,000 people per square kilometer, resulting in high-density passenger flows.

 

Transportation land: Europe and America Over 30%; in China, it stands at 10%–15%, which is relatively low.

Automobiles contribute to environmental pollution, including air and noise pollution, as well as smog. One-third originates from vehicle exhaust.

Energy Security: Oil import dependence has already exceeded 60%, with automobiles accounting for over 90% of gasoline and diesel consumption, and approximately 70%.

 

Parking is the most effective tool for managing car ownership and guiding its rational use. As an economic instrument, it is both reasonable and uncontroversial, making it a more viable alternative than congestion pricing or vehicle‑restriction policies.

 

Basic parking spaces: located in residential areas and their vicinity, designated for nighttime vehicle parking, subject to availability.

Parking for visitors: In shopping malls, office buildings, and similar facilities, parking spaces left vacant after vehicles depart can hinder their usability.

 

In Manhattan, New York, and Hong Kong, car ownership is far lower than in China’s large and medium-sized cities. Nearly half of households in New York do not own a car, and in Manhattan it is… Seventy-seven percent of households do not own a car. Manhattan, with an area of 60 square kilometers and a population of over 1.5 million, has a population density of 25,000 people per square kilometer—comparable to that of Beijing’s Third Ring Road area or Shanghai’s Inner Ring Road. In its core district, the maximum parking provision standard for residential developments is 0.2 to 0.35 spaces per household, while outside the central area, the average minimum requirement stands at 0.48 spaces per household.

 

Hong Kong’s total population is approximately With a population of 7.3 million, Hong Kong currently has 580,000 private cars, equating to roughly seven vehicles per hundred residents—about half the mainland average and far below the levels in megacities such as Beijing, Shanghai, Guangzhou, and Shenzhen (Beijing: 5.44 million cars for a permanent population of 21.73 million, or 25 cars per hundred residents). Hong Kong’s parking‑space allocation standards are: one space per 6–9 households for market‑rate housing and one space per 26–39 households for public rental housing—significantly lower than the “one car per household” norm prevailing in most Chinese cities today. As for parking‑space prices, the current average stands at around HK$1.5 million (approximately RMB 1.2 million), with individual units having fetched as much as HK$5.9 million last April.

 

In Tokyo, Japan, only a very small number of corporate executives have parking spaces. London. “The ‘little cucumber’ is a prime example of a building with no on-site parking spaces. Originally the headquarters of Swiss Re, it is Switzerland’s most expensive office tower, standing 180 meters tall. Aside from designated spaces for persons with disabilities, it offers no parking for private cars. On the ground floor, however, there is a bicycle parking area three times larger than the standard size, complete with shower and changing facilities.

 

China’s parking‑space allocation standards have been steadily rising and are now quite stringent; by contrast, overseas, the minimum requirements have been replaced by maximums that continue to be lowered. Even with higher allocation standards, this does not necessarily translate into actual construction, particularly in older residential neighborhoods.

 

In China, the number of parking spaces for travel is already quite high; in Beijing, it is: 1:0.42; Shenzhen is: 1:0.18.

 

2. General Principles for Urban Parking Supply in China

 

As an important tool for managing parking demand, the overall parking supply should be kept at a relatively low level, with basic parking needs in residential areas being met to an appropriate extent, while on‑trip parking is strictly controlled.

 

In the central districts of major cities, owning a car is still a luxury; even in medium- and small-sized cities, parking for travel must be strictly regulated.

 

Differentiation: differentiation across varying scales and regions; differentiation between urban central districts and suburban areas; differentiation among different types of buildings, such as office and commercial spaces, hospitals, and schools; and differentiation across regions with differing levels of public transport development, among others.

 

A city’s specific parking policy is a composite of various differentiated measures, requiring a finely tuned approach to determine the appropriate level of parking supply and corresponding policies for each city and each district.

 

Facing reality, the solution to urban parking challenges in China lies in prioritized infrastructure development, maximizing the use of on-street parking, and supplementing this with shared parking; furthermore, advancing the marketization of parking pricing, so as to… Turn “expensive” into “difficult”; strengthen law enforcement in a step-by-step manner to gradually achieve orderly and standardized parking; and consistently maintain a state of tight parking availability.

 

Focused development: Simply increasing parking spaces cannot solve the problem. “Parking scarcity,” like traffic congestion that cannot be alleviated simply by building more roads, will in fact exacerbate the problem. In residential areas—especially older neighborhoods—the priority is to address the basic parking needs of existing vehicles; as for on‑street parking, demand is already very high and must be strictly controlled: Beijing’s on‑street parking ratio stands at 1:0.42. Hospitals may appropriately develop additional parking capacity, while schools should focus primarily on providing temporary parking solutions.

 

Give high priority to parking issues for public buses, tour buses, and trucks: Hong Kong has a total of roadside parking spaces. There are 33,410 parking spaces in total, of which 18,534 are designated for passenger cars, accounting for only 55%, while there are 3,906 spaces for trucks, 1,069 for buses, and 9,901 for motorcycles. In the context of parking provision for public rental housing, there are 22 parking spaces per 1,000 households for private cars, 5 for light trucks, and 9 for motorcycles, indicating a high ratio of trucks to private cars.

 

Fully leverage on-street parking resources: On-street parking is a parking resource under government control that can be adjusted at any time; by altering its supply and pricing, it can influence both the quantity and cost of parking across the entire area.

 

In the initial phase of parking regulation, a limited number of nighttime parking spaces should be designated along curbs in areas where they are urgently needed, to provide temporary relief for basic parking needs. Once dedicated parking facilities within residential areas are completed, such on-street parking will be discontinued. In other zones, on‑street parking must immediately be subject to stringent controls, restricted to short-term use only, and gradually reduced, thereby restoring roadways to their primary function of facilitating traffic flow.

 

Shared parking is possible, but only to a limited extent and with significant challenges: In Beijing’s six central districts and the suburban new towns, there are approximately… parking spaces for public buildings that remain vacant at night. 810,000; if a 20% sharing rate is applied, this could provide approximately 160,000 parking spaces. However, issues related to willingness, management, and safety pose significant challenges.

 

Let supply and demand determine market prices: there’s no such thing as “hard”; there’s only “expensive.” The European Union has standard regulations for on-street parking in its member states: when the saturation level of on-street parking spaces in a city exceeds When occupancy reaches 75%, zoned parking management with charging should be implemented; if, after implementing zoned parking management, the parking space utilization rate exceeds 85%, parking rates must be increased until the utilization rate falls below 85%.

 

The National Development and Reform Commission’s “Guiding Opinions on Further Improving the Pricing Policy for Motor Vehicle Parking Services” emphasizes: establishing a pricing mechanism for parking services in which prices are primarily determined by the market, with property rights holders exercising pricing authority.

 

Parking spaces for travel should be made available as soon as possible, including on-street parking subject to government‑set pricing. Effectively guide private car travel; by setting on-street parking rates higher than off-street rates, we can effectively regulate overall market pricing and gradually implement temporary parking functions.

 

Residential parking should be implemented in a phased manner, but its objectives should align with market realities. Practices in Hangzhou and Guangzhou: These initiatives should not be led by property management companies; government guidance is preferable. Guangzhou City. “The charging for motor vehicle parking services in residential parking lots shall be subject to government‑guided pricing. Once sufficient competitive conditions are in place, and with the approval of the Municipal People’s Government, market‑based pricing may be adopted.”

 

Strengthen law enforcement in a step-by-step manner to progressively achieve orderly and standardized parking. The importance of law enforcement: Without enforcement, nothing works! Raising public awareness, ensuring orderly parking, and enabling market mechanisms to function effectively all depend on robust enforcement.

 

Enforcement must be strict and carried out step by step, striking… “Protracted warfare.” First, priority should be given to addressing areas surrounding daytime office and commercial districts, with gradual expansion to residential neighborhoods during evening hours (with targeted enforcement tailored to specific circumstances).

 

Enforcement entities and enforcement resources: unified (urban management authorities?); evidence‑collection delegation (to the residential community’s property management); intelligentization.

 

III. How to prioritize the development of urban parking facilities?

 

 

Parking Lot Development: Who Will Build It, and How?

 

In addition to on-street parking, Hong Kong has a total of There are 643,000 parking spaces for passenger cars, the vast majority of which were built as part of residential developments. The government operates only 11 public parking lots, with a total of 5,211 spaces—less than 1% of the overall supply—and these facilities are also slated for gradual closure. In August 2015, the National Development and Reform Commission and six other ministries jointly issued the “Guiding Opinions on Strengthening Urban Parking Infrastructure Construction.”

 

Stabilize economic growth, identify effective investment sectors, and attract private capital.

 

There is a significant parking shortage, yet effective supply remains limited; conditions should also be in place for industrialization, enabling the attraction of private capital.

 

Should be: non‑essential public goods, commercial real estate.

Conditions: The parking lot’s investment and operation generate positive cash flow, and under certain conditions—such as reaching a specified fee level—it can achieve profitability, thereby ensuring financial sustainability.

 

Core and Policy Orientation: Industrialization

 

The government is not the primary builder or provider; rather, it should create a favorable environment for industrial development and strive to achieve: parking spaces. “Land is available for development,” the investor “has the funds to build,” and investment and construction “yield returns.”

 

Parking space “Land for Development” — Planning and Land Policy

 

Develop a special plan for parking facilities, incorporate it into the land-use control detailed plan, and establish a project database. Refer to the “Urban Parking Facilities Planning Guidelines” and the “Urban Parking Planning Standards.”

 

Encourage the development of parking facilities by utilizing both above‑ground and underground spaces within public infrastructure, thereby enhancing the multifunctional use of land. Relevant departments shall handle planning and land‑use procedures in a tiered manner. See the “Notice on Further Improving Urban Parking Lot Planning, Construction, and Land‑Use Policies.”

 

Investment entity “Built with Funds” — Financial Support Policy

 

Accelerate efforts to encourage investment entities to issue special-purpose bonds for parking‑lot construction; see the “Guidelines for the Issuance of Special‑Purpose Bonds for Urban Parking‑Lot Construction.”

 

Study the establishment of a special industrial investment fund to guide the development of parking infrastructure; a dedicated construction fund.

 

Encourage the adoption of public-private partnerships ( Under the PPP model, the government contributes public‑resource assets and, by waiving revenue rights for a specified period, ensures the financial returns of private capital.

 

With the reduction of financing costs as the core objective.

 

Investment and construction “With Returns” — Prices and Subsidy Policies

 

Charging Rates: Full liberalization of charging for newly constructed parking facilities wholly funded by social capital. See the “Guiding Opinions on Further Improving the Charging Policy for Motor Vehicle Parking Services.”

Demand management: Reduce and gradually eliminate on-street parking spaces; strengthen enforcement against illegal parking to ensure effective utilization of public parking facilities.

Commercial amenities and indirect subsidies: Without altering the land use or the rights of the land user, a portion of the floor area may be designated for community‑oriented commercial services to help offset insufficient revenues.

 

In summary, it comes down to: autonomous pricing, demand assurance, and indirect subsidies.

 

A breakthrough: promoting the development of parking facilities on municipally-owned land.

 

Propose “Encourage enterprises, public institutions, residential communities, and individuals to utilize their own land and above- and below-ground spaces to build parking facilities, permit public access, and derive corresponding revenues.”

 

Market Access: In principle, no minimum requirement is imposed on the number of berths.

Approval: For small-scale parking facilities or those constructed on privately owned land, a filing‑based system is encouraged.

 

Parking Management Informatization and Equipment

 

Promote the development and application of metered parking systems, intelligent parking guidance systems, automatic license plate recognition systems, and other such technologies.

Strengthen the interconnectivity and information sharing among disparate parking management information systems, promote the integrated development of parking and the Internet, and support the development and widespread adoption of mobile‑terminal–based internet‑enabled parking applications.

Include the parking industry in the list of high-end equipment manufacturing, extend relevant policy incentives, and foster domestically developed equipment brands.

 

IV. Current Status and Recommendations for the Parking Industry

 

 

Current status of the parking industry:

 

1. Some cities have conducted comprehensive, in-depth baseline surveys and developed highly feasible parking plans. For example, Shenzhen.

 

2. A number of construction projects have been advanced across various regions.

 

Some cities are advancing specific parking‑lot projects through social investment entities such as local government‑investment companies, with pilot and exploratory initiatives focusing on ancillary facilities at transportation hubs, public squares, and other key locations.

 

They are built by government agencies, enterprises, and public institutions to address their own parking challenges. While the parking industry has expanded in scale, the improved convenience of car travel has, in turn, exacerbated traffic congestion.

 

The residential sector has yet to break the deadlock, remaining out of step with actual needs and inconsistent with the original intent of the policies.

 

3. Various forms of capital are continuously paying close attention.

 

Urban investment company: Has applied for a special-purpose parking bond, but has yet to realize the original policy objectives. “Leverage the catalytic role of government investment and the pivotal role of social capital as the mainstay of investment.”

 

Large state-owned enterprises: Shougang, China State Construction Engineering Corporation, China Railway Group, Gezhouba Group, and others have since… Since 2016, the company has entered the market, recognizing the vast potential of the urban parking industry and expanding into diversified new investment areas.

 

Industrial Financial Capital: In 2016, Wanda injected RMB 1.55 billion into ETCP; in 2017, Sunshine Haitian raised RMB 1.5 billion in funding. The key factors driving this interest are the current undervaluation of parking‑related assets and the growing trend toward smart parking solutions.

 

4. The information platform and intelligent infrastructure are being advanced at a rapid pace.

 

At the enterprise level: intelligent public parking management—reducing leaks and wastage while cutting labor costs.

City governments are increasingly promoting the intelligent management of on-street parking and building parking information platforms.

 

Beijing completed A pilot project for electronic on-street parking fee collection, with 4,000 parking spaces, is being actively promoted in cities including Shijiazhuang and Weifang. Cities such as Tianjin, Shenzhen, and Wuhan have either fully completed or largely finalized their parking information platforms.

 

Questions and Suggestions :

 

1. Refine and improve policy measures to ensure seamless implementation down to the “last mile.”

 

Policy-driven funding should better encompass private capital, thereby promoting equal opportunities.

Refine financial policies such as the pledging of franchise rights and toll collection rights, and promote the securitization of parking facility assets.

Formulate detailed rules for the real estate registration of parking facilities: clarify the ownership of different types of parking spaces, define the nature of mechanical multi‑storey parking garages, and establish the conditions and policies for their registration as real estate.

The detailed implementation rules for land supply set forth specific, actionable measures for the development of public parking facilities on allocated, granted, leased, and collectively-owned construction land.

 

2. Normalize rigorous parking enforcement to ensure effective demand is met.

 

3. Promote pilot and demonstration projects in older residential communities and under the PPP model, among others.

 

Expeditiously explore a work coordination mechanism and paradigm that are both effective and replicable and scalable. Accelerate the process of exploration. The new PPP model places greater emphasis on promoting the relatively mature BOT model.