Market forces set to reshape Australasian self storage industry
The Self Storage Association of Australasia (SSAA) has released its biennial SSAA State of the Industry 2024 report, offering a comprehensive analysis of the self storage sector’s current performance and future outlook. The report reveals a sector poised for significant growth, underpinned by strong fundamentals, innovation, and evolving consumer demands.
Key market insights
Australasia’s self storage sector comprises more than 3,300 facilities, housing 697,000 storage units across more than 7 million square metres of net storage area. The industry is estimated to have a total valuation of $20 billion. Average occupancy rates remain high at 87%, though have come under pressure this year whilst average storage fee rates of $380 per square metre per annum reflect a resilient industry set for stabilised growth.
“Despite cost-of-living pressures and a slower property market, the self storage sector continues to demonstrate remarkable stability,” said Makala Ffrench Castelli, CEO of the SSAA. “With over 250 new self storage developments worth $2 billion in the pipeline, the industry’s long-term outlook remains optimistic.”
Transaction volumes have also rebounded, driven by strong investor appetite, stable capitalisation rates and a reset of vendor expectations around trading conditions. Industry consolidation continues though the sector remains highly fragmented, with independent operators retaining the largest market share at just over 50% of net storage area.
Economic recovery to drive demand
The report anticipates an increase in demand as interest rates ease in 2025 and the housing market recovers, boosting turnover and listings which are key demand drivers for self storage.
“Sustained population growth, migration and people moving house will all play pivotal roles in increasing demand,” Ms Ffrench Castelli explained. “The continued decline in dwelling sizes, rising apartment approvals and changes in the way we live and work are all structural drivers that will continue to positively impact demand for self storage.”
The SSAA Industry Gauge measures the strength of the market at a point in time, linking changes in performance to demand drivers, and returned a positive result for 2024 – just over half a point stronger than in 2023.
A strong supply pipeline
The sector is set to experience record levels of new supply over the next three years. 2024 has seen 35 new self storage developments completed. Looking ahead, 62 new facilities are planned for 2025, with an additional 164 projects in the pipeline, predominantly concentrated on Australia’s East Coast. These developments could add over 1.3 million square metres of net storage space. However, early-stage projects remain subject to market conditions and other uncertainties, underscoring the dynamic nature of the sector’s growth trajectory.
Technology and innovation at the forefront
With 25% of facilities already remotely managed and 50% of operators planning to enhance their technology and automation capabilities within the next year, the sector is embracing technology to meet shifting consumer expectations.
“Customers are demanding seamless digital and physical experiences,” said Ms Ffrench Castelli. “While online research and sign-ups are growing at pace, the human touch remains important. The challenge for operators is to blend technology with personalised customer experiences effectively.”
Evolving consumer behaviours
Awareness of the self storage offering remains high across Australia and New Zealand, at around 80% of the total adult population. The report highlights the most compelling benefits of self storage, with removing clutter (68%), securing items (62%), and flexible storage durations (47%) the top reasons for choosing self storage. Storage for home renovations and property improvements has remained steady at 34%, whilst storage of sentimental items has grown from 32% in 2022 to 39% in 2024.
Business storage is also on the rise, with demand shifting from the retail sector to the trade economy.
“Consumers are seeking more than just space—they’re looking for security, flexibility and convenience,” Ms Ffrench Castelli explained. “This is especially evident in the increasing overlap between personal and business storage needs, presenting operators with new opportunities to innovate and capture this growing market segment.”
Future outlook: Stable growth amid a surge in supply
The Australasian self storage industry has outperformed traditional property asset classes in recent years and it continues to mature, driven by a mix of traditional strengths and innovative practices. Despite short term caution in certain markets, predominantly due to new supply, operators remain optimistic about the future with 60% forecasting improved financial performance and 40% planning to increase capacity or undertake further development within the next year.
“As we look beyond 2025, the Australasian self storage market is well positioned for stable growth as key macroeconomic drivers evolve. Our industry has proven its resilience and adaptability, which will underpin future growth and shape how the sector navigates these changing market dynamics.”
For a detailed view of the industry’s performance and insights into emerging opportunities, members are encouraged to access the full report via the SSAA Member Portal. The report is available for purchase by non-members from www.selfstorage.org.au.
ENDS
For further information, please contact:
Makala Ffrench Castelli
Chief Executive Officer
Self Storage Association of Australasia
ceo@selfstorage.com.au
www.selfstorage.org.au
