There are many reasons why the demand for self-storage is rising in Hong Kong. The demand for it is due to the tight living spaces, big e-commerce, and a constantly rising population. And that is one of the reasons why this market is enjoying a high level of acceptance. Many businesses and even residents are getting these. According to the data gathered by SAA and the Annual Survey, the average occupancy of self-storage in Hong Kong was constantly at 80%. Hong Kong self storage market has interesting trends and forecasts, and ReloSmart Movers Hong Kong is here to help you out with it. Here is some information you should know.
The supply of Hong Kong self storage market
When we talk about the supply from storage Hong Kong, we need to say that the existing stock of land evaluable for this is getting lower. During the past 2 decades, it shrunk, and it is getting more difficult to plan it properly now. The total of this land area shrunk by almost 14.5%. When it comes to the occupiers of these lands, and industrial buildings, you will notice that only 3.9% are used for warehouse/storage floor space or self-storage.
This means that the supply of self-storage in Hong Kong will decrease in the coming decades. There are not that many options to choose from, but people often take care of their needs with the help of Kwun Tong storage. These people keep their belongings or products safe until they need them again. It is one of the best ways not to worry about the availability of self-storage n Hong Kong.
Supply-Demand trends of HK storage
The dynamics behind self-storage are connected with the long-term prospects of renting. And that will draw great interest from potential investors. You should know that the storage units in Hong Kong are greatly fragmented. The latest market research shows that there are 90+ operators and over 400 facilities. Because of this, it can be really difficult to get into this sector. One of the best solutions to this is merging and acquisitions.
These trends can be really difficult to follow or control, even for businesses. Sometimes, these complications can stress out people who want to get some storage services. Especially when it comes to long-term services. Long-Term Storage Hong Kong can be a solution to these issues. For many years people turn to these services to fulfill their needs.
What are the key market trends for storage units in Hong Kong
The thing is, the rising costs of office space will largely drive the market. According to CBRE Group Inc, Hong Kong is one of the most expensive places when it comes to the rental of office spaces. And some of the main reasons for this are:
- Constant opening of smaller e-shops will significantly increase the demand for self-storage in the coming years. While large e-commerce firms are using the third-party logistics
- because of constant demand from businesses, foreign firms are coming in and helping regular storage facilities turn into high-tech storage services. This can mean a lot for any up-and-coming businesses in Hong Kong.
Not only is this important for businesses, but for regular consumers as well. The shortages are going to influence everyday life soon. Especially if you are searching for cheap storage in Hong Kong. Luckily, there is always short term storage Hong Kong ready to step in and help people who need them. It is one of the best ways you can get some extra space in your home or business fast.
Investing in Hong Kong storage facilities
This is another interesting thing you need to pay attention to. There are some challenges and risks that you will surely take. Like zoning rules that need to get reviewed, etc. Self-storage facilities have permits to operate in industrial zones and buildings only if they comply with the terms and conditions of the leases. Of if the owners of said companies have relevant waivers. If the zones are “industrial only”, then anyone who is planning to open up a self-storage here is risking getting into some legal trouble.
When it comes to another risk you need to have in mind, you will have to think about many other factors that could influence this industry. For instance, a big fire incident in Ngau Tau Kok in 2016 caused the implementation of stricter regulations. And since then, many government departments pushed for stricter policies toward self-storage operations.
Some of them are the minimum width of aisles, the appropriate number of windows and exits, the distance between walls, floor, and ceiling as well as between storage cubicles, and proper sprinklers in case of fire. This regulation influences the efficiency of the storage units and increased safety. It is a good idea to read more about self-storage fire safety protocols before thinking about investing in them. It will help you properly plan everything.
As you can see, this is what you need to pay attention to when it comes to Hong Kong self storage market. Hong Kong storage facilities are constantly thriving, but still, there are strict regulations implemented to make sure there is safety and professionalism. And that is one of the reasons why they are always in demand, especially when it comes to high-end companies. Investing in them, or just renting them will surely provide you with great investment return, or just get some extra space you needed. If you are looking to learn more about the self-storage, warehouse, and moving industry, then feel free to read our blog. It will surely provide you with the best information you will need.
References:
https://www.jll.com.hk/en/trends-and-insights/research/self-storage-on-the-rise-in-hong-kong
https://www.researchandmarkets.com/reports/5176735/hong-kong-self-storage-market-growth-trends
