Singapore Self-Storage Operators May Face Forced Relocation After Government Land-Use RulingSingapore Self-Storage Operators May Face Forced Relocation After Government Land-Use Ruling

Self-storage operators in several parts of Singapore may be forced to relocate after their leases expire following a recent land-use review by JTC Corp., a government agency that oversees the use of industrial land in the country. The agency said it’ll have further discussions with the companies to continue using the sites for self-storage based on Singapore’s industrial needs, according to sources.

JTC established a moratorium on self-storage development in late 2021 due to limited land in Singapore for industrial use. After consulting with several local facility operators about the future of the industry and recognizing an increased need for the service from consumers, the ban will be lifted on April 1, sources reported.

According to the Self Storage Association Asia (SSAA), there’s pent-up demand, with 17,000 small businesses using self-storage, the sources reported. “We are happy that JTC has taken on board our feedback and updated us on their plans,” said Helen Ng, SSAA Chairwoman. “We continue to engage in areas of concern that could impact the availability of self-storage to [small businesses] and families who depend on this service.”

The storage operators who may be affected by the latest JTC ruling occupy sites zoned for heavy-manufacturing activities or in areas designated as core zones. JTC plans to allow facilities only in regions designated for light, clean industries such as Bishan, Clementi, Tampines and Woodlands, where existing properties may be converted to self-storage.

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“The JTC’s announcement of sample select sites for self-storage development bears scrutiny and is not, as we understand it, an exhaustive list,” said Jes Johansen, president of the Singapore chapter of the SSAA. “We also understand that some zones will be reserved solely for manufacturing, excluding self-storage. This bears careful study as part of our engagement process.”

The ruling is expected to impact some operators’ expansion plans, however, those with greatest demand plan to discuss future growth with JTC officials. Cost management will be a priority, as industrial rents have risen significantly over the past few years, a source reported.

“Uncertainty surrounding lease renewal makes it difficult, if not impossible, to move forward [with expansion] confidently,” said Johansen, who is also CEO of Storefriendly, which operates seven facilities in Singapore.

Formerly known as Jurong Town Corp., JTC is a statutory board that’s responsible for planning, developing and managing land for industrial purposes to support Singapore’s economic growth. It’s charged with balancing the needs of various industries, including emerging sectors like self-storage.

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Launched in 2014, SSAA provides information and education to Asia self-storage owners and operators as well as other industry stakeholders. It provides advocacy, intelligence, market reports, training and a networking platform.

Sources:
Business Times, Some Self-Storage Operators May Have to Move Out of Current Locations After JTC Review on Land Use
The Straits Times, Self-Storage Firms in 20 Areas Can Operate Until Leases Expire