Across the Asia-Pacific (APAC) region, Japan’s metropolitan areas lead in office fit-out expenses. Tokyo tops the list at $268 per square foot (psf), followed closely by Osaka at $263 psf, and Nagoya at $258 psf. In comparison, Singapore ranks 14th in terms of average fit-out costs among APAC capitals.
According to Cushman & Wakefield (C&W), the increase in costs is driven by ongoing pressures on the global supply chain, leading to higher shipping charges. The conflict in Europe has disrupted business operations, rerouting shipping vessels away from the Suez Canal and adding an extra 10-14 days to transit times.
For the second consecutive year, Singapore has emerged as the most expensive location for office fit-outs in Southeast Asia. The cost estimate assumes that more than 50% of the space is allocated to dedicated workstations, with tenants adopting flexible operating systems in the wake of the pandemic.
The average cost of fitting out an office in Singapore rose by 4.4%, from $180 psf in 2022 to $188 psf last year, according to a report by global property consultancy C&W.
Grant Carter, head of project and development services for Singapore at C&W, observes that the trend of opting for high-quality office spaces remains strong, with more companies choosing premium buildings in strategic business locations.
The rising costs in Singapore mirror a broader trend across the APAC region, where average fit-out expenses continue to climb, albeit at a slower pace compared to the previous year.
Among Southeast Asian cities, Manila had the second-highest average office fit-out cost at $129 psf, followed by Bangkok at $144 psf.
“Designing for a curated office environment is gaining momentum, with a continued focus on creating spaces that enhance employee engagement, boost productivity, and improve the overall user experience,” Carter adds.
C&W highlights that creating workspaces that promote efficiency, well-being, and sustainability remains a priority for tenants, even as they contend with rising costs.
Globally, London holds the title for the most expensive office fit-out costs, with prices reaching $355 psf.