by Cheryl Tay
A joint study conducted by Colliers International and Lock+Store Self Storage revealed that the demand for self-storage services in Singapore will grow significantly, as the number smaller office and shoebox units has increased in tandem with the rising cost of land.
The study showed that 96 percent of the 894 respondents do not use self-storage services but 24 percent have plans to use the service within the following year. As such, the industry is poised to achieve strong growth, reported The Business Times.
Price is a major consideration fo existing and potential users of such services, with about 87 percent of potential users unwilling to pay over S$200 for a 50 sq ft storage space, which is equal to two HDB storerooms. Thus, self-storage operators should maintain competitive prices to retain customers.
Operators are also threatened by new players in the industry, as competition has grown over the years due to the market’s stable cash flows and attractive prospects.
The latest entrant to the market is the Hong Kong-based StoreFriendly, which has rapidly expanded, adding four new facilities since it opened in December 2011. This has also increased the number of self-storage operators in the country to nine, with a total of 25 storage facilities.
More users will likely capitalise on the self-storage market due to the higher costs of warehouse space. But operators’ expansion may be hampered by rising rents and prices, as higher operating costs are required.
Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email email@example.com