Contractor Sentiment Generally Positive as the Worst of Price Pressures Ease, According to Office Fit Out Vendors Across Asia Pacific

Associated Press

24-03-2025

Six Greater China cities are ranked in the top 20 most expensive office fit out markets in Asia Pacific
Hong Kong moves up four places to rank as fifth most expensive fit out market in Asia Pacific, remains most costly in Greater China
HONG KONG SAR - Media OutReach Newswire - 24 March 2025 - The cost to fit out an office in key locations across Asia Pacific has continued to rise, although at a slowing rate, according to findings from Cushman & Wakefield's Asia Pacific Fit Out Cost Guide 2025.
The global real estate service provider's annual report showed that fit out costs range from US$195 per square foot (psf) in Tokyo as the most expensive market, to US$58 psf in Jakarta as the least expensive. In Greater China markets, Hong Kong was at US$160, Beijing at US$100, and Shanghai at US$96.
Similarly to previous years and in line with expectations, Japanese cities were the most expensive markets while Southeast Asian cities were the most affordable locations for office fit outs. While there was some fluctuation at a market level and within local currencies, the ranking of most to least expensive fit out costs in US$ per square foot remained largely unchanged, though gaps have narrowed between some markets. Hong Kong was a notable market mover, moving up from ninth to fifth in the Asia Pacific listing, overtaking Auckland, Seoul, Sydney, and Melbourne, due to the strong US$ and consequently the HK$.
Report author Dr Dominic Brown said changes to local fit out costs were largely aligned with the economic outlook of each market and the related office leasing activity.
'As a region, Asia Pacific is one of the more expansionary, and we have seen more growth and slightly more positive sentiment about the market by contractors here than in other regions.
'Measured by both contractor sentiment and actual cost, it appears that the worst of the pricing pressure from recent years has resolved and prices for raw materials are on the way down while tight labour markets continue to drive some wage inflation.'
In local currency, North Asian cities including Tokyo, Seoul and Osaka saw the greatest fit out cost inflation of around 16%, followed by Australian cities, which averaged 11%. India recorded steady inflation of around 3% in most cities. In contrast, slower economic conditions in the Chinese mainland served to dampen contractor pricing change.
Top 10 most expensive locations for average fit out costs in Asia Pacific
RANK
CITY
AVERAGE COST
(US$ PSF)
1
Tokyo
195
2
Osaka
191
3
Nagoya
187
4
Canberra
172
5
Hong Kong
160
6
Auckland
158
7
Seoul
156
8
Sydney
153
9
Melbourne
150
10
Brisbane
146
Top six most expensive locations for fit out costs in Greater China
RANK
CITY
Basic Hybrid
(US$ PSF)
Collaborative Hybrid (US$ PSF)
(USD PSF)
Advanced Hybrid
(US$ PSF)
1
Hong Kong
96
160
257
2
Taipei
61
110
202
3
Beijing
68
100
150
4
Shanghai
70
96
164
5
Shenzhen
68
94
156
6
Guangzhou
65
92
156
In the Chinese mainland, against the dual backdrop of a slowdown in domestic economic growth and escalating international trade conflicts, tenants have adopted a more cautious approach in their office leasing decisions. Meanwhile, the construction market continues to undergo structural adjustments, and the Consumer Price Index (CPI) has remained at a low level for a long period of time. Office fit out costs in Chinese mainland Tier 1 cities have seen a degree of decline compared to the previous year, as reflected in the 2025 report.'
Read the full report here.
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About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.hk or follow us on LinkedIn ( https://www.linkedin.com/company/cushman-&-wakefield-greater-china).