Is Self-Storage About To Take off In Thailand?

23 Jun 2017

According to new research from JLL, demand for self-storage facilities in Thailand could be set to grow in the coming years as more people want to store personal items outside of their home. Demand may also come from SMEs who have excess goods and equipment, but nowhere to place them.

The demand for self-storage in Thailand is fairly limited at the present time, but it is growing as the country continues to urbanise. Public awareness and expanding small businesses will only serve to help the industry increase in size.

“The self-storage industry in Thailand is relatively fragmented, with only a handful of small, self-owned providers operating primarily Bangkok’s suburbs and key resort destinations such as Pattaya and Phuket. As self-storage is a new notion and remains relatively unknown to many Thais, it serves the niche clientele, with most of the customers being expats,” says Sarun Kunakool, Senior Manager of Research and Consultancy at JLL, to the Bangkok Post.

Most self-storage facilities in Thailand offer things such as 24-hour keycard access, CCTV surveillance and on-site guards. These are commonly found at self-storage facilities around the world. The rental rates for self-storage facilities in Thailand remains very high as there is no competition in the country.

“Such high rental rates, coupled with a lack of public awareness, represent a major obstacle to their popularity. However, in the long term, structural factors are expected to drive further growth in Thailand’s self-storage market,” says Sarun.

With residential unit sizes getting smaller, the general public will require additional storage space in the future. Unused furniture, sports equipment, and other belongings not needed for day-to-day life are among the things that can be stored outside of the home. As demand grows, operators can build storage units that are smaller and more affordable to the general public.

“Urbanisation is an important driver for self-storage. Growing urban populations mean smaller and increasingly expensive living spaces in cities,” says Bob Tan, Director of alternatives for Asia Pacific Capital Markets at JLL.

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