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A battle for users of self-storage space is emerging in Tampines, Singapore’s largest housing estate, with the latest opening of Lock+Store’s new facility this month.
Located on Tampines Street 92, the self-storage facility is on the same stretch as its competitor StorHub, which operates two facilities along the same road.
However, both companies insist they are not fighting for the same customers.
Helen Ng, CEO of General Storage Company, which operates Lock+Store, said population density and income levels were the main reasons for establishing a presence in the area.
“Tampines is a fast-growing area with a high population density and more middle-income households.”
With the addition of Lock+Store, Tampines will have the highest concentration of self-storage facilities in Singapore, with a total gross floor area (GFA) of about 180,000 sq ft, Ng noted.
Currently, there are 20 self-storage operators in the local market. StorHub is the biggest, with 11 facilities covering a GFA of 1.4 million sq ft island-wide, while Lock+Store revealed it is the number three player.
Meanwhile, over 95 percent of wine storage units at Lock+Store’s flagship Chai Chee facility are already taken up, and it plans to offer wine storage space in Tampines.
“There is a rising trend of both private and business storers keeping artisanal wines at our Chai Chee facility for their personal consumption or distribution and retail purposes,” said Ng.
“Despite the keen competition and the entry of specialised wine storage providers in Singapore, the demand for climate-controlled storage outstrips supply. This has led us to dedicate a customised space for wine storage at our Tampines facility.”
Aside from wine collectors, the Tampines facility is also targeting e-commerce retailers by offering the onsite sale of SmartPacs and stamps. “SmartPac is a postage-paid postal service for delivery anywhere in Singapore, the next working day for a fixed price,” said Lock+Store, adding that SmartPacs are convenient for e-commerce retailers with products that can fit into a box measuring 300mm (l) x 190mm (w) x 70mm (h).
Meanwhile, Heng Tze Kiang, General Manager of StorHub Management, revealed that its customer base is varied, with the bulk of them being individuals who are renovating their homes and hobbyists storing their collectible items at the facility.
“We have businesses that store their goods in our facilities to meet seasonal demand, as well as those that rent our units on a longer-term basis to store their excess stock,” he said.
“Our storage solutions offer businesses the flexibility to upsize/ downsize/ terminate the service without the usual penalties of traditional warehouse rental.”
When asked if the entry of Lock+Store could cause a price war, Heng stated that pricing is only one component of marketing.
“In addition to offering value-for-money storage solutions, StorHub prides itself on its strong product offerings and warm, personalised customer service that we believe keeps us at the forefront of the self-storage industry.”
Image: Lock+Store’s new facility in Tampines, which is on the same road as StorHub’s two existing facilities.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote and edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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