Why Hong Kongers are digging the self-storage concept

Technology and security in one facility.

It has been reported that there is increasing demand for self-storage services, as more users accept self-storage as a solution to their storage needs amid improving operators’ service levels.

According to a report from Colliers International, accessibility and security are two major concerns for self-storage users. Traditional operators do not provide 24-hour access (which presents a hurdle for domestic users who desire unrestricted access to their possessions) nor surveillance systems.

A number of the self-storage operators have installed automatic identification systems - such as smart card readers - to provide their customers with 24-hour accessibility. Additionally, most self-storage sites are now equipped with CCTV and other security systems. Together, these systems have helped improve customers’ confidence in the concept of self-storage.

Here’s more from Colliers International:

Domestic users have traditionally stored bulky and/or infrequently accessed items in self-storage. Recently, however, users are becoming increasingly comfortable storing highly valuable and ‘special’ items in facilities with robust security systems.

Sports gear, wine collections and seasonal clothing are increasingly being stored as these items usually require a climate-controlled environment which is costly in a private flat.

The provisions of value-added services that cater to the users’ needs are also bringing in more self-storage users. For example, some self-storage operators provide moving assistance, while others offer product receiving services for customers who make purchases online and want the items delivered to and stored in their self-storage space.

The well-publicized efforts by the Hong Kong Government to increase residential supply will impact the self-storage sector positively.

The sale by the Government of several mass residential sites for development of small-medium sized units will (almost without exception) have no dedicated store room.

The scarcity of office space in the last several years has been a challenge for business operators.

Since 2013, there has been a growing trend among large businesses to remodel their space in order to accommodate additional staff.

Given the high cost of office space it is unlikely business operators will increase their storage space in situ, making self-storage an increasingly viable solution.

The average rent of self-storage is on par with private residential flats in nearby locations. Despite this seemingly high cost, because self-storage provides size options down to 15 sq ft monthly rentals below HK$1,000 per month are common, meaning it is still an affordable option for many domestic users.

Self-storage also offers private and corporate users flexibility with respect to their commitment over time. This is particularly pertinent to corporate users when compared with the typically minimum 3 year office lease term.