It’s all about people and space. There are 5.31 million people living in Singapore. After Monaco, it is the second densest sovereign state in the world. The average income has tripled since 1990. This means that the middle class is growing and those are the people who have a growing need for self storage.
Eighty percent of the people who live in Singapore live in Housing and Development Board (HDB) flats. They range in size from a studio apartment with 377-484 square feet up to an executive flat with 1,400 square feet. Those flats do not have enough square feet to hold all of the possessions that people in Singapore now own.
StorHub Self Storage introduced the self-storage concept to Singapore in 2003 to meet this rising demand for self storage. They have grown from a single facility to a 7 facility portfolio in Singapore.
In 2013, StorHub bought out a competitor, Big Orange, which added 4 more facilities to their holdings. They are now the leading self storage business in the city and are looking to expand into China. StorHub now has 10,000 storage units and over 1 million square feet of storage space.
Heng Tze Kiang, General Manager of StorHub, indicated that the demand for self storage has risen over the years and all indicators predict that that need will continue to grow.
Kiang indicated that there are two other factors that are influencing the need for self storage. One is the increasing price of homes. Because homes are so expensive, people are staying in the HDB flats. Another reason is that the cost of office space is also increasing.
The Internet has played a role in the increasing demand for self storage units. With access to the Internet, people living in Singapore have become aware of the many advantages of self storage. They see online how it can benefit them personally and also professionally for business owners.
StorHub isn’t the only self storage business in Singapore. Extra Space Self Storage also has a presence there. Daphne Lim, Marketing Manager, indicated that there are six Extra Space facilities there. Extra Space has plans for two more facilities in 2014.
Extra space has increased its customer base by 15 times since it opened its doors in 2007. In fact, the company has had an 11% more customers in 2014 compare to December 2013.
“Self-storage firms find silver lining in Singapore’s space crisis.” Yahoo! Finance; 19 February 2014.