Singapore Self-Storage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Singapore Self-Storage Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Singapore self-storage market is expected to grow at 9.01% CAGR during the forecast period of 2021-2026.

As a result of the COVID-19 pandemic, Singapore is heading towards its worst-ever recession in nearly two decades. The economy continues to feel the severe strain from the situation, which has infected more than 32,000 people in the country, as per the statistics published by the officials. According to the Ministry of Trade and Industry, Singapore’s GDP is expected to shrink by more than 4% in 2020. The GDP shrinking is down from the previously projected range between 1 and 4%. As the businesses are observing a loss due to the significant economic downturn, it will significantly affect the country’s self-storage market.

• The requirement for more space for belongings depends on several changes in a consumer’s lifestyle, such as moving home, family expansion, and retiring. With the rising urbanization and apartments in major Singapore cities gradually getting smaller and more expensive, a significant portion of the country’s population is finding they are running out of room. Self-storage concepts have stepped in to cater to this rising customer requirement, and as provision steadily grows, it appeals to the players operating in the market.
• According to Singapore Department of Statistics, in 2020, the population density of Singapore was 7,810 people per square kilometers. The population of Singapore had been increasing over the years within a very limited space, posing challenges such as housing shortages and land scarcity. With an urban population of around 5.69 million people in 2020 and a land area of approximately 720 square kilometers, Singapore was the third most densely populated territory in the world.
• With the growing popularity of self-storage space among end-users, new entrants in the market want to venture into the ever-increasing demand. To date, there are more than 30 self-storage operators with more than 80 facilities in Singapore from an estimated less than ten operators five years ago. With the increased supply and evolving needs, understanding the demand changes in Singapore’s self-storage industry becomes essential for existing and potential storage industry players.
• A dense market in a tough and competitive industry led the local storage companies to differentiate in terms of promotional strategies such as offering “USD 0” Move in, “USD 1” Move in, “30% off the first three months of storage” and “First 2 months of free storage with 6 months minimum worth of storage”. These have become some of the major considerations for customer buy-in and retention.
• Some of the self-storage players are reopening their facilities to cater to the customer’s storage needs remotely. For example, StorHub had resumed its business from 2nd June 2020. The company’s all 12 self-storage facilities and reception offices had reopened on that date and continued its business while adhering to the latest safety management measures.

• Singapore is a hub for everything from business to travel. Due to the enormous urban population in the country, space can be significantly hard to come across in urban places. The vast majority of homes in the country are on the small side, and there are less spacious rooms in most of the apartments. Also with increasing GDP value, the market urbanization trend is expected to cater to the market growth.
• The urban population living in Singapore usually invests in the rental of self-storage units. Self-storage unit rental has proved to be handy for people in Singapore who have possessions that are big and, therefore, tough to keep things around. It is also an attractive choice for Singapore residents who have belongings that they don’t use that often.
• Companies like Store-Y Self-Storage have opened several self-storage stores near the urban communities to lower the proximity to the customers. The company has a center called “Self Storage Woodlands,” which is an acclaimed center in Woodlands Community in the North Region.
• The continual growth of Singapore’s economy in the last couple of years has given rise to greater resident affluence and consumerism. Therefore, there is a significantly higher tendency for more urban people to accumulate articles, particularly collectibles like electrical equipment, wines, and ornaments.
• With a growing number of hobbyists, there is an increasing requirement for specialized space to store different types of collectible items. A few years back, about 90% of LOCK+STORE Singapore’s wine storage solutions have been subscribed by domestic users, and going forward; the self-storage vendor is looking to expand this potential segment of the business.

• From a recent survey of LOCK+STORE Singapore, about 50% of business users opted for self-storage space as a cost-effective alternative compared to renting shops or warehousing spaces. With rental business outlets, one of the significant cost components is the considerable amount of rent, coupled with the changes in the economic climate. Business owners are nowadays more conscious of storage costs. The flexible self-storage model allows business customers to choose from wide-ranging size options for their storage needs.
• As the number of startups is increasing in the country, the flexible self-storage options meet the requirements of startups amid the growing e-commerce sector and the expanding tech-savvy population, which primarily seek more cost efficiency and operational flexibility when conducting their business. This will further boost the segment’s growth in the coming years.
• The self-storage market landscape has become inundated with choices. The market is no longer enough to rely on USPs or brand strength. The facility operators must focus on selling an experience, and it starts with the business relationship with the customers. Customer relationship management or CRM is the technology lever in enterprise performance that can extend operations by automating a wide variety of tasks, thus improving the customer experiences.
• By using a bi-directional integration of CRM with the property-management software, the vendors can create personalized experiences for each customer’s unique requirements, therefore streamlining the support process to delight customers.

Singapore’s self-storage market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their client base across the globe. These players focus on the research and development activities, strategic alliances, and other organic & inorganic growth strategies to stay in the market landscape over the forecast period.

• June 2020 - As part of its COVID-19 response, Singapore-based self-storage operator StorHub entered into a partnership with GoGoVan, an Asia-based, ridesharing service that specializes in transporting goods in urban areas. The strategic alliance will give StorHub customers flexible moving and self-storage options, while government lockdown restrictions are in place.
• May 2020 - United-Hampshire US REIT, a US-based REIT with interests in grocery-anchored retail stores and self-storage, recently listed an IPO on the Singapore stock exchange. Sponsored by US-based real estate investment company Hampshire Cos. LLC and asset-management firm UOB Global Capital LLC, the company’s 22-property portfolio comprises 3.17 million square feet. It also includes more than 15 shopping centers and four self-storage operating offices.

• The market estimate (ME) sheet in Excel format
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