The average cost of fitting out an office in Singapore rose 4.4% from $180 psf in 2022 to $188 psf last year. (Photo: Samuel Isaac Chua / EdgeProp Singapore)
The average cost of fitting out an office in Singapore rose 4.4% from $180 psf in 2022 to $188 psf last year, according to a report by international property consultancy Cushman & Wakefield (C&W).
This makes offices in Singapore the most expensive to fit out in Southeast Asia for the second year running. The cost assumes more than 50% of the space is allocated to dedicated workstations and that the tenant has adopted flexible working practices post-pandemic.
Breakdown of fit out cost for Southeast Asian countries. (Source: Cushman & Wakefield)
The higher costs in Singapore come as average fit out costs continued to rise across the Asia Pacific (Apac) region, albeit at a slower pace compared to last year.
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According to C&W, the rise in costs was underpinned by sustained stressors within the global supply chain, resulting in increased shipping costs. The ongoing conflict in Europe has reduced trade flows and re-routed shipping vessels away from the Suez Canal, adding approximately 10-14 days in travel time.
Among Southeast Asian cities, Manila had the second highest average office fit out cost at $129 psf, followed by Bangkok at $144 psf.
Within Apac, Japanese cities had the highest fit out costs. Tokyo ($268 psf) took the top spot followed by Osaka ($263 psf) and Nagoya ($258 psf). Singapore ranked 14th in terms of average fit out cost in Apac cities.
Average fit out costs in the Asia Pacific, in USD. (Source: Cushman & Wakefield)
In terms of global rankings, London has the most expensive fit out costs worldwide at $355 psf.
C&W highlights that creating workplaces that promote productivity, wellbeing and sustainability continues to be a priority for occupiers even as they grapple with cost challenges.
Grant Carter, head of project and development services for Singapore at C&W, observes that the flight to quality trend remains prominent, with more companies opting for better quality buildings in business-strategic locations.
“Designing for a curated office experience is on the rise, with a continued focus on creating a destination that contributes to higher frequency, higher performance, and an overall increase in user experience,” he adds
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