Hong Kong is the 7th costliest office fit-out market in APAC

Soaring AV/IT costs add to the expensive builders’ works.

Hong Kong is the most expensive office fit-out market in Greater China and the 7th most expensive across Asia Pacific, with an average cost of $1,018.86 per sqft (US$130 psf), a report by Cushman and Wakefield revealed.

Beijing emerged as the most expensive market in Greater China and the 10th most expensive market in APAC, with an average cost of $924.81 psf (US$118 psf).

"Builders' works is still the most expensive component in new office fit-out projects, however, the AV/IT cost soars considerably given the rise of remote working, virtual conferencing and co-working places,” commented Bryant Cheung, director and head of project & development services in Hong Kong, on the island city’s placement in the list.

Japan and Australia are the most expensive office fit-out locations in APAC, meaning that they have the highest office fit-out construction costs across 28 cities studied by Cushwake. Three Japanese cities topped the list: Tokyo ranked first with an average fit-out cost of $1, 583.14 psf (US$202 psf), followed by Osaka and Nagoya at $1,520.45 psf (US$194 psf) and $1,489.1 psf (US$190 psf), respectively.

"Tokyo's position as the most expensive office fit-out market in Asia Pacific is a reflection of the unique construction requirements in this market. The practice of working with building-appointed general contractors and the pursuit of high-quality finishes contribute to the high fit-out and reinstatement cost,” said Tom Gibson, managing director, project & development services Asia Pacific for Cushwake.

Three cities from Australia—Sydney ($1,206.95 or US$154 psf), Auckland ($ or US$140 psf) and Brisbane ($ or US$134 psf)—rounded up the top six.

Cushwake anticipates the gap between high and low office fit-out cost cities to narrow in the future.

"We anticipate the gap between high and low office fit-out cost cities to narrow in the future as Vietnam and India will be looking to further improve the quality of their office space including having better technology, end-of-trip amenities and higher quality furniture, fixtures and equipment. This will drive up the total office fit out costs in these markets, which are already facing rising labor and material costs,” added Gibson.