Self-storage business growing as homes get smaller and pricier; rental rates set to rise

DEMAND for self-storage space in Singapore is on the up, as higher property prices lead people to downsize and small e-commerce businesses seek warehouse space.

But while the business is growing and storage rates have also risen, operators are finding themselves squeezed by the rising cost of industrial space and higher interest financing, paving the way for further increases in storage rental rates.

Operators have seen double-digit increases in storage space rented out over the last two years, keeping occupancy at their facilities high.