Self-storage businesses in Singapore are experiencing robust growth since the introduction of the product to the market in 2003, with residents and commercial customers taking quickly to the concept. Approximately 20 facilities have been developed throughout the country.
Local industry pioneer Storhub Self Storage, owned by the Hersing Corp., reported a revenue jump from $900,000 in 2003 to $13.4 million in 2009. Its net profit has been steadily increasing, from a loss of $1.4 million in 2003 to a yield of $2.4 million in 2009. ]
Storhub has opened facilities in Changi, Kallang, Tampines and Toa Payoh. Director Jack Chua said another facility will open this year in Tampines with about 1,500 units. He sees customers turning units into space for collections such as Hello Kitty memorabilia, shoes and sports cars.
Extra Space Self Storage has seen its revenue and net profit quadruple since it opened in Singapore in 2007, according to Chief Executive Michael Hagbeck. Eighty percent of the company’s business comes from residents, the other 20 percent from commercial tenants. Hagbeck said commonly stored items include guitars, manga (comics), wine collections and paper prayer money.
Big Orange Self Storage Singapore entered the market three years ago. Angus Miller, chief executive, attributes the success of the business to flexibility in both the size of the space and the length of the rental contract, which gives self-storage an edge over warehouse operators.
Another company, Lock+Store Self Storage, is a subsidiary of real estate firm Mapletree Investments. SingPost has also moved into the business with Self Storage Solutions, launched in February 2009.
Source: Business Times, Renting self-storage space a brisk business