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Self-storage: a new option for property investors

BOTH private and institutional investors are showing increased interest in the self-storage sector because of its growth potential and improved public awareness, leading international real estate services provider JLL said.

Yields on self-storage facilities are potentially attractive compared to other traditional asset classes, according to a report released today by the consultancy.

Across the region, landlords can expect yields of around 2 to 4 percent in Hong Kong and Taiwan, 5 to 7 percent in Tokyo and Singapore, 5 to 8 percent in Australia, and up to 8 percent or above in Chinese mainland and India depending on location, access, quality and building facilities.

"Urbanization is an important driver for self-storage," said Bob Tan, director of alternatives, Asia Pacific capital markets at JLL. "Growing urban populations mean smaller and increasingly expensive living spaces in cities and creation of more renters who move around more frequently."

The self-storage industry has a younger history in Asia, compared with more mature markets in North America, Europe and Australia. The notion of storing personal items outside the home is catching on due to the region's dense population, increasing residential prices, growing affluence and changing lifestyles, the report said.


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