Hanoi and Ho Chi Minh City rank among the top three markets with the lowest office fit out costs, according to findings from Cushman & Wakefield’s 2025 Fit Out Cost Guide.
Fit out costs range from $195 per square foot (psf) (equivilant to $2,096 per sqm) in Tokyo to $58 psf (equivilant to $624 per sqm) 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. The global real estate service provider’s annual report showed that the average cost of equipping a new office in Hanoi and Ho Chi Minh City is approximately $678 per sqm and $656 per sqm, respectively. Meanwhile, the cost of upgrading and renovating an existing office is $355 per sqm and $344 per sqm, respectively.
Country Head of Cushman & Wakefield Vietnam, Trang Bui stated
“In Vietnam, the majority of employees still choose to work from the office daily. Office design trends are evolving rapidly, emphasizing spacious environments equipped with cutting-edge technology. Modern office spaces often incorporate greenery and open layouts, encouraging collaboration and interaction. Additionally, there is a growing focus on employee wellness and workplace benefits. Our office strategy consulting team has observed that businesses are increasingly prioritizing sustainability, with many aiming for 'green' certifications such as LEED,...”
The Asia Pacific economy took meaningful steps forward through 2024, with inflation back within, or near to, target bands in most of the region’s economies. This has allowed central banks to pivot and begin the rate easing cycle, albeit later and at a slower pace than seen in other regions. Although there are several reasons why Asia Pacific is lagging in rate cuts, one factor is the strength of the U.S. dollar, which is creating foreign exchange pressures within the region. Such pressures are also evidenced in fit out costs, which have shown strong increases yearon- year in local currency but a mild moderation in U.S. dollar terms.
Looking to the year ahead, economic growth is expected to rebalance, with normalisation of growth in emerging markets, following out-performance over the past 12 months, and acceleration of growth in select advanced economies. Should the region follow this script, it is consistent with the Asia Pacific region absorbing approximately 75 million square feet of space through 2025.
While cost increases are easing, they have not fully abated; rather they are expected to grow at a slower pace. This is true for raw materials and labour costs, leading to construction accounting for a significantly greater proportion of fit out costs in some markets. Consequently, companies need to consider allocating greater capital expenditure budgets to accommodate the fit out of their choice. Positively, lead times are little changed and are expected to remain stable over the year ahead which should provide greater security in project timelines.
In this guide, we have maintained our coverage to 33 key cities across Asia Pacific, but have provided greater insights into industry conditions through our inaugural Asia Pacific Contractor Sentiment Survey. Whether it’s a first generation fit out for hybrid working or a more advanced evolution in workplace strategy, a retrofit or reinstatement, this guide serves to assist occupiers in defining their capital planning and relocation budgets.
The guide includes a comprehensive fit out cost section covering furniture, mechanical & electrical works, builder works, audio visual/IT, and other miscellaneous costs.
Download report here: https://www.cushmanwakefield.com/en/vietnam/insights/office-fit-out-cost-guide
