Customers set to bear cost of upgrading Hong Kong mini-storage facilities in wake of deadly fire

Industry participants warn that rents could double once fire-safety measures are put in place under a new regulatory system

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Oliver Leung from RedBox Storage foresees a 30 per cent rise in storage rents. Photo: Xiaomei Chen

Published: 5:00pm, 5 Feb 2017Updated: 4:51pm, 6 Feb 2017

Mini-storage operators warn that customers could bear the cost of an industry shake-up, as an impending regulatory clampdown by authorities coupled with escalating property prices pose challenges to the industry.

After a 108-hour inferno at an industrial building housing mini-storage facilities took the lives of two firemen last June, the Fire Services Department sought to strictly enforce international standards on fire safety. The government is also considering tabling legislation to set up a licensing system for the sector.

The blaze at a mini-storage facility in Ngau Tau Kok has prompted a shake-up of the industry. Photo: Sam Tsang

Three operators and the leading industry body agreed that two things would happen after the changes – businesses would close and prices charged to customers would go up.

Prices of mini-storage units have risen an average of 10 to 20 per cent in the past five years because of higher property prices, inflation and wages, according to data from Store Friendly Self Storage Group, Hong Kong’s largest franchise that operates 100 stores across the city.