Self-Storage Operators in Singapore Capitalize on Residential, Business Space Constraints

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Since it was introduced more than a decade ago, self-storage has become an integral part of residential life and business space in Singapore. The industry continues to expand due to space constraints in homes and as an affordable option for businesses looking for office space, according to the source.

''Demand for self-storage has certainly risen over the years and looks set to increase further,” said Heng Tze Kiang, general manager of StorHub, one of the nation’s largest storage operators. “Rising space constraints, a more affluent population, increasing home prices and office-space occupancy costs have led more people to store their belongings in self-storage facilities.”

StorHub began serving Singaporeans in 2003 and today operates 11 facilities. Its portfolio comprises more than 1 million square feet in 10,000 units. Its growth has been helped in part from consumers educating themselves about self-storage on the Internet, Kiang said.

“The Internet has also served to create awareness among consumers on the advantages of self-storage and how it can complement one’s lifestyle and business needs,” he explained. “Many customers now view self-storage facilities as an extension of their living space and for them, reliability and security are their top storage priorities.''

Another active player in the market, Extra Space Self Storage (not affiliated with the U.S. self-storage real estate investment trust Extra Space Inc.), continues to expand its footprint in Singapore as well as emerging markets in Malaysia and South Korea. The company currently operates six facilities in Singapore.

''We remain optimistic because there is simply a great deal of latent demand for self-storage,” said Daphne Lim, marketing manager for Extra Space. “Homes are getting smaller while incomes are getting larger. Singaporeans don’t always have the space to accommodate all their acquisitions.''

Sources:

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