APAC self-storage rents to continue growing in the next 5 years
Rents in the region recorded annual growth of 5.6%.
According to JLL, there are a couple of factors driving demand for self-storage in Asia Pacific. Firstly, urbanisation and lower housing affordability has led to more opting for smaller living quarters or renting, thus requiring separate storage spaces.
Secondly, the continued growth of e-commerce: business groups are renting spaces. They tend to rent larger units, for longer lease periods at higher rents – typically those with value-add services like security/insurance.
Here’s more from JLL:
On average, operators are planning to add 6 new facilities each year in 2024 and 2025, with Japan, China, India and Hong Kong leading expansion. Asset creation is likely to attract capital and liquidity into the sector, especially as operators become more attractive when they achieve scale.
According to the 2023 SSAA Survey, more operators expect rental growth in APAC to continue – 86% of respondents are expecting positive rental growth in the next 3-5 years (vs 72% pre-COVID).