SINGAPORE: In a significant development, businesses in Singapore have increased their use of self-storage by 14% year-on-year, now accounting for 40% of the market, according to the Self-Storage Association Asia (SSAA), as reported by the Singapore Business Review.
The rise in demand is attributed to two key factors: the return-to-office trend and the growth of e-commerce. As businesses navigate a changing landscape, many turn to self-storage solutions to optimize space and streamline operations.
To cater to the evolving needs of entrepreneurs, storage operators are introducing Pick-Up and Drop-Off (PUDO) services. This innovation helps micro-business owners avoid the time-consuming task of visiting storage facilities, offering greater convenience and efficiency.
Helen Ng, Chair of the SSAA, emphasized the growing importance of self-storage, stating, “Self-storage is becoming an essential tool for micro businesses in Singapore, offering a cost-effective and flexible solution in today’s dynamic business environment.”
The surge in self-storage demand: Drivers and trends
According to SpaceHub, the self-storage industry in Singapore is fueled by a combination of socio-economic factors and changing lifestyles. The main drivers behind this rising demand include
Changing lifestyles and smaller homes
As property prices continue to climb in Singapore, many individuals and families are downsizing to more affordable, smaller homes.
Larger apartments and houses are becoming increasingly out of reach for the average person, prompting a shift towards more compact living spaces.
With limited room for storage, many people are turning to self-storage units to store non-essential items like furniture, electronics, and seasonal belongings. These external storage solutions help maintain a clutter-free, functional living environment.
Evolving business needs
Small and medium-sized enterprises (SMEs), particularly e-commerce businesses, drive much of the demand for self-storage.
As online shopping continues to boom, many businesses require extra space to store inventory but cannot justify the cost of large commercial warehouses.
Self-storage offers a cost-effective alternative, providing secure, easily accessible storage for goods. This solution is ideal for businesses looking to streamline their operations and manage inventory without the financial burden of larger leased spaces.
Space constraints in high-density living
Space has long been a challenge in Singapore, particularly for those living in high-density housing such as HDB flats and condominiums.
With limited room for personal storage, many residents are turning to self-storage facilities to store items they don’t need daily. From seasonal decorations to old furniture, these external spaces allow individuals to free up precious rooms in their homes, making self-storage a practical solution for those with limited space.
The resurgence of international travel
As international travel continues post-pandemic, many Singaporeans are turning to self-storage to keep seasonal items like winter clothing, travel gear, and large luggage safe and accessible.
Given Singapore’s tropical climate, these items are only used sporadically, making self-storage the perfect option for keeping them secure without cluttering up home storage space.
With the return of travel, the demand for convenient, cost-effective storage for infrequently used items has surged.
As businesses continue to adapt and evolve, self-storage is proving to be a vital resource, providing the space and flexibility required to thrive in a fast-paced market.