As Published in the ISS (Inside Self Storage) International Issue 2018.
By Sam Kennard
Prices climb, occupancies slide as competition intensifies
The Australia self-storage market saw a 2.2 percent dip in occupancy in the second half of 2017, while rate per square meter increased 3.4 percent. New supply is opening across the country, and there are 50 new facilities in the pipeline. As a result, some submarkets will likely enter a phase of subdued occupancy and revenue.
The December 2017 Storage Index released by Urbis Pty. Ltd., which tracks self-storage demand, rental rates, occupancy and revenue along the East Coast of Australia and in Auckland, New Zealand, revealed that actual storage rates had increased by 3.4 percent over the preceding six months. (This is the rate paid by existing customers, not prevailing street rates for new renters.)
The observations from the field at my company, Kennards Self Storage, are that competition is biting hard and aggressive pricing is becoming commonplace. Indeed, our same-store analysis reveals our move-in rate is 0.7 percent lower than the same time last year. This is the first time move-in rates have fallen since we began analyzing this data.