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News Release

Bangkok

Self-storage takes off in Thailand

Demand is likely to grow as more people are looking to store personal items outside the home


​Self-storage is an industry where storage space is rented to tenants, comprising mainly small businesses and individuals. Though space requirements from the sector in Thailand are still relatively small at this point, they are growing in response to rising demand driven by urbanisation, public awareness and the growth of small businesses, according to property consultancy JLL.

Sarun Kunakool, Senior Manager of Research and Consultancy at JLL, says: "The self-storage industry in Thailand is relatively fragmented, with only a handful of small, self-owned providers operating primarily in suburban areas of Bangkok 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."

The majority of self-storage facilities in Thailand offer 24-hour keycard access, CCTV surveillance and on-site guards. Due to low competition, rental rates for self-storage facilities in Thailand are relatively high. For example, self-storage rents in Bangkok range from approximately THB 1,500 to 2,500 per month for 1.5-4.0 square-metre storage units.

"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,"

As Thailand becomes increasingly urbanized and residential unit sizes continue to shrink, the need for additional storage space will only grow. There are many Thais are looking to store personal items such as unused furniture, sports equipment and other belongings outside the home.

With growing demand for safe, reliable and convenient self-storage facilities, operators will be able to develop at a size which allows for economies of scale, helping to improve the affordability of self-storage facilities in Thailand.

In Asia, the self-storage industry is most established in densely populated and more affluent regional cities. Hong Kong, Singapore and Tokyo have the smallest average home sizes in the region. The size of an average home is less than 74 square metres in these three cities, as compared to over 90 square metres in the United Kingdom, and over 185 square metres in the United States and Australia.​

Along with the rise of e-commerce and growth of small medium businesses, there is likely to be greater demand for niche or value-add services, presenting various opportunities for operators in these growth markets. These services include document storage, climate-controlled environments, valet delivery and storage among many others.