PAY a hundred per cent more rent or move out.
(Left)Mrs Kylie Jones and her daughter, Tayla, 3, at their self-storage unit at Lock+Store. They are among a growing number of expatriates renting unit at self-storage facilities. -- Pictures: ADELINE ONG
That was a reality check for an expatriate, who wanted to be known as Mr Tony, in the soaring property market.
He decided to take up the 'halfway house' option and move in temporarily with a friend.
But he had to contend with all his belongings and furniture from his packed two-bedroom apartment.
To solve the problem, the Head of Strategic Partner Development at a global telecommunications firm decided to rent self-storage space for $600 a month.
Other than some clothing and a few personal items, everything that Mr Tony, 44, owns is now stored away.
He is not alone.
Companies which provide self-storage facilities are reporting a rise in rentals by foreigners as rising rental prices force more of them to downsize.
One of the companies, Lock+Store, has double the number of expatriate clients compared to nine months ago.
About 10 to 20 per cent of its 1,200 units at Tanjong Pagar Distripark are now rented by expatriates, said its general manager, Mr Lee Seng Chee.
Overall, business has grown at least 60 per cent in the last year, said Mr Lee.
Lock+Store general manager, Mr Lee Seng Chee, pointing out one of the smaller self-storage units.
He added: 'A large part of the surge is due to the number of expatriates who are downsizing due to the booming rental market, and companies not increasing housing allowances by as much.'
But the rise is also due to the number of expatriates relocating temporarily due to work, he added, as well as the increasing popularity of self-storage facilities.
Market leader Storhub has seen the jump in expatriate numbers mainly at its Changi outlet. From having eight foreigners from March to May, it registered 15 from June to August.
Its vice-president for marketing, Mr Anthony Chua, attributed it to the increasing popularity of homes in the East with expatriates.
Mr Chua added: 'They normally furnish their homes very well, so when they move to smaller places, they have no choice but to find somewhere to store their bulkier furniture.'
Another major player, Store-It!, has seen its foreign clientele rise from 10 to 15 per cent in the past year.
In Mr Tony's case, he had signed a two-year lease and paid $2,100 a month for his apartment at Valley Park condominium at River Valley Road.
When the contract came up for renewal earlier this year, the landlord raised it to $4,000 a month and offered only a year-long lease.
Mr Tony said: 'The rent situation has gone through the roof. From what I've seen, rents have effectively doubled. I know of friends who either bite the bullet and pay more or they move out of town.'
Mr Tony, who hails from the UK and has worked in Singapore for 21/2 years, said he no longer finds it worth renting and has decided to buy a place.
Homemaker Kylie Jones, 34, has not had to downgrade. Yet she rents a 14 sq m unit at Lock+Store as her five-bedroom semi-detached house is not large enough to keep all her family's belongings.
She counts herself lucky to have signed a three-year lease in January 2006 because in the past year, she has seen rental prices in her Bukit Timah area skyrocket.
While Mrs Jones is paying $6,300 a month, a neighbour who moved in three months ago, is paying twice the amount.
Mrs Jones said: 'It is ludicrous. Many expatriates come on a package and their companies are not increasing their salary to meet the increase in rent.
'People I know are finding that they have to move into smaller places as rents are eating into their savings. Quite a few are looking to move to the East Coast area.'
She added that a few of her expat friends, who foresee that they will have to downgrade, have asked her about her experience of using the storage facility.
Lock+Store's Mr Lee said self-storage has not only become a necessity for some expatriates but is also part of their lifestyle.
Mr Lee added: 'Expatriates are more used to renting self-storage facilities, and as word spreads, more in the expat community are using it. They use it as an extension of their home.'
Most of its clients are from the US, Australia, Germany, UK and France. It is adding another 580 units soon, and has plans to build a new facility in the east to cope with rising demand
No comments:
Post a Comment