The self-storage industry is in the midst of an unprecedented building boom fuelled by a growth in apartment living, Urbis research has found.
Urbis’ latest Storage Index shows that the supply of storage units in Australia is set to swell by more than 10 per cent in less than two years.
Thirty one self-storage facilities have been proposed in Sydney, Melbourne and Brisbane over the next two years, nine of which were lodged by new market entrants.
Previously, less than three such facilities were built in each metropolitan location a year.
Urbis Director David Blackwell said construction of new storage stock in metropolitan areas had gone up substantially in the past three years.
A balloon in apartment living was fuelling stronger demand for self-storage and would be the major factor in driving revenue growth, Mr Blackwell said.
Brisbane had the highest increase in people living in apartments of 25.5 per cent between the 2011 and 2016 census dates. Sydney’s apartment dwellers grew by nearly 19 per cent, while the number in Melbourne was up 9.41 per cent.