Hong Kong’s construction prices remained steady: JLL

The average fit-out cost is US$130 per sqft.

Construction prices in Hong Kong remained “broadly static” with only moderate price increases recorded as the market competition resulted in margin compression which contributed to minimising the impact of price increases.

In a report, JLL said the recent easing of restrictions in Hong Kong may help alleviate some of the pressure on construction costs in Singapore.

It added that as the market’s real GDP for 2022 will decline by 3% year-on-year, and inch up by 1.4% YoY in 2023, it will be a neutral market for landlords and tenants.

JLL said the average fit-out cost in Hong Kong for 2022/2023  for progressive style based on medium specification is US$130 per square foot (sqft), higher than the Asia Pacific average of US$108.

READ MORE: Hong Kong tops priciest office fit-out markets in Greater China for 3rd consecutive year

A progressive style meant an open floor plan with no enclosed offices and traditional benching of around 60% of the floor area and the remaining space given to meeting rooms or collaborative work zones.

Fit-out cost for moderate style or the substantially open plan with 10 enclosed offices traditional methods covering 70% of the area is US$142.

Traditional style fit-out cost is US$163, wherein around 30% of the floor is dedicated to enclosed offices, and traditional methods of working cover 90% of the floor area.

The cost of furniture in Hong Kong is $37 per sqft, whilst reinstatement costs are $38 per sqft.