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 2025 Fit Out Cost Guide.
The global real estate service provider’s annual report showed fit out costs range from $195 per square foot (psf) in Tokyo to $58 psf in Jakarta. 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 dollars per square foot remained largely unchanged, though gaps have narrowed between some markets. Market movers included:
- Hong Kong jumped from 9th to 5th most expensive, overtaking Auckland, Seoul, Sydney and Melbourne, propelled by the strong US dollar to which its currency is pegged.
- Manila climbed from 20th to equal 17th with Shanghai, overtaking other Chinese mainland cities Shenzhen and Guangzhou which experienced declining rates
- Jakarta fell from 24th to 33rd position as occupiers opted for lower-spec fit outs, making it the most affordable fit out destination in the region, ahead of Ho Chi Minh City, which was the most affordable destination last year.
Report author and Head of International Research, EMEA & APAC, 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.”
Asia Pacific Head of Project & Development Services Tom Gibson said:
“We have seen an uptick in retrofit and upgrade activity across the region as more clients opt for lease renewals over relocations. In almost all cases, the employee experience remains a key focus for occupiers, with these higher quality fit outs continuing to place upward pressure on costs in most markets.”
Key findings by market
Australia & New Zealand
- The Australian market has shown resilience with fit out costs stabilising; a moderate increase in capital expenditure budgets is anticipated to accommodate evolving workplace strategies.
- Stability in lead times is a positive sign for project timelines in 2025.
- Companies should plan for higher expenditure in Sydney and Melbourne, which, as key business hubs, remain the most expensive locations for office fit outs,, especially for advanced hybrid workspaces.
- Despite the economic volatility, the Australian office market is expected to experience stronger growth in 2025 compared to 2024. This growth will be driven by increased demand for high-quality office spaces that support hybrid working models.
Greater China
- Hong Kong has been a noted market mover in the new report, moving up from ninth to fifth in the Asia Pacific cost listing, predominantly due to the strength of the US$ and consequently the HK$.
- Elsewhere in Greater China markets, slower economic conditions have dampened contractor pricing change, with collaborative hybrid fit out costs softening from last year.
India
- India has seen growing interest in adaptable workspaces blending hybrid spaces, flexible office models, and co-working areas driven by startups and SMEs favouring agile work environments and tech-enabled solutions that facilitate collaboration and support remote work.
- “Premiumisation” in Metro Markets Continues: Key business hubs are seeing a trend toward premium fitouts that reflect brand identity and operational excellence to attract multinational clients and top talent. Enhancing employee experience and wellbeing remains a top priority.
- Sustainability is now central to fitout projects, with many developments targeting LEED and IGBC certifications and green solutions to reduce operating costs and meet evolving tenant expectations.
Indonesia
- Jakarta has the lowest fit-out costs in Southeast Asia at $58 psf, making it an attractive market for businesses looking for cost-efficient office solutions.
- Indonesia is a key market for industrial and data centre expansion, with major investments supporting the country's digital economy and infrastructure growth which could lead to increased demand for office fit outs in the medium term.
- As businesses adapt to hybrid work models, demand is growing for flexible office spaces and modern workplace designs, reflecting Indonesia’s rapidly changing corporate environment.
Japan
- Japan's newly introduced overtime cap regulation for the construction industry, set to take effect in April 2025, aims to reduce total working hours by 20%. It is expected to extend the relocation period by a factor of 1.5 to 2.
- During the survey period, Japan’s overall construction cost index rose 8.0% y-o-y, far outpacing the corresponding CPI growth of 2.7% y-o-y.
- Osaka stands out for slightly higher construction cost growth, driven by competing construction demand for the Osaka Expo, which starts in April 2025.
Korea
- Increase in local clients needs to fit out their office with Collaborative Hybrid & Advanced Hybrid work circumstance. (up to 40% increase compared with last year)
- Construction costs and management fees for new fit outs and restorations continue to rise, due to strict local codes for EHS and building construction.
- Sustainability is a key consideration for new fit out projects.
Philippines
- Vacancy rates in the Prime and Grade A office space will remain elevated in the short- to medium-term due to expected new supply of more than 0.7 million square meters in the next 2-3 years.
- As many companies transition to hybrid work models, the demand for office layouts that emphasize open spaces and collaboration zones is growing. This trend is reshaping urban spaces and creating a steady need for innovative solutions that enhance office functionality and flexibility.
- The total ban on offshore gaming operations has led to a surplus of vacant office space, often with semi- or still-usable fit outs available for potential tenants. There may be opportunities to repurpose large, vacated spaces in non-CBD areas into functional spaces suitable for alternative or non-traditional office uses.
Singapore
- Sustainability remains a key focus, with companies prioritising green building certifications, renewable materials, and energy-efficient designs.
- Offices are integrating open collaboration areas, soundproof pods, and wellness-focused quiet spaces to meet diverse needs.
- Office design is evolving to place greater priority on employees’ health and wellness, adopting advanced air quality systems, ergonomic layouts, and biophilic elements.
- Prefabrication and modular construction are gaining traction, enabling faster project completion without compromising safety and quality.
Thailand
- Thailand's office market remains in an oversupply phase. Several large-scale projects with a combined lettable area of at least 200,000 sqm have postponed construction, delaying new supply originally expected between 2025 and 2028. Meanwhile, some occupiers are downsizing and optimising office spaces to better align with workforce needs.
- With an average fit-out cost of $85 psf, Bangkok remains one of the more affordable markets in Southeast Asia for corporate occupiers.
- Businesses in Thailand are adopting more flexible office designs, with collaborative hybrid fit-outs gaining popularity, reflecting the shift towards post-pandemic workplace strategies.
Vietnam
- As of Q4 2024, the total supply of Grade A and Grade B office space has reached over 3.4 million square meters.
- In 2025, Ho Chi Minh City's office market is expected to welcome 165,000 square meters of new supply from two projects in both central and non-central areas. Meanwhile, Hanoi is projected to receive 24,500 square meters of new supply.
- Green buildings will be an inevitable trend for new development projects.
About the Fit Out Cost Guide
Cushman & Wakefield’s Fit Out Cost Guide is an annual publication providing cost breakdowns for office fit outs, refurbishments and reinstatements for key office markets across the region. This year, the report includes two new sections: findings from a Contractor Sentiment Survey and an online calculator for estimating capital expenditure.
- All prices in USD unless otherwise stated
- The Fit Out Cost Guide is available online here.
- EMEA Fit Out Cost Guide and Americas Fit Out Cost Guide are also available.