Boom in Australia’s Self-Storage Industry
Self-storage business and industry has seen a massive growth in the past decade. In last 10 years’ the number of self-storage businesses and facilities have grown nearly around 13%. Major reason for this growth is customer awareness. Also, the accessibility of these self-storage spaces within towns has helped this industry to grow in numbers nationwide. Digitalization has also played its part in the growth of this industry as now it is easier for such business to reach its customers through online target marketing highlighting the concept and advantages of super easy storage.
Types of Customers
Individuals and Businesses are the two types of consumer for this industry. Although Individuals are considered to be the primary customers for this business but revenue from the later one has been growing immensely in the past 5 years mainly because of the boom in online retail sector nationwide.
Profitability in Self-Storage Business
The boom in self-storage businesses in Australia in past few years as mentioned above is not just because it is beneficial for its customers only but also a win-win deal for the investors as well. A properly maintained and well managed self-storage business typically earns a 60 to 70 percent profit for its investor which is indeed a lucrative income only if it is run efficiently and smartly.
Key Drivers of Increased Demand
Growth in Population, Better Household Income, Growth in E-Commerce Businesses and Boom in Residential Market are considered to be Key Drivers because of which Self-Storage demand is increasing day by day in Australia.
- Population Growth: Due to rapid increase in population growth the demand of services and product is growing. The population of Australia is immensely increasing. Elderly people often look to economize, and this may trigger them to shift some or all of their belongings to the storage. The areas with higher proportions of elderly person are benefited by the self-storage facilities majorly because of their lifestyle factors.
- Better Household Income: Households with better income encourages self-storage. They typically have tendency to pay for it. When students from a strong income background study overseas, there is often a requirement to store their possessions in a storage facility. In other words, they can afford the self- storage rates.
- Growth in E-Commerce Business: Growth in e-commerce also encourages small online retailers to increase their demand for self-storage space. They buy products in bulk quantity and tend to store them by utilizing these self-storage facilities. Whether it be small or medium businesses, both are a source of demand for self-storage space. Business growth is forecast to boost over the five years to June 2024, being supported by a number of factors, including the weaker value of the $AU and Government incentives for small businesses. As business needs grow, one need a self-storage solution that works in a positive way. Self-storage facilities provide a wide array of container sizes to choose from. One can be sure to find the right size of storage container for business products if ever needed for more or less space.
- Boom in Residential Market: Homeowners may choose to rent self-storage whilst they move between houses. Whilst national housing transfers have trended upwards in recent years. With the increase in popularity of apartment living in Australia, more people are looking for additional storage spaces for their belongings. Lifestyle has changed and people prefer to shift into smaller apartments. When people plan to move, they prepare as early as possible. A self-storage unit is ideal in this case. The declining size of new apartment builds is a positive source of self-storage demand. As people can’t place all of their furniture, household items etc. in a small place, they encourage self-storage facilities to help them out.
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