Singapore has most expensive office fit-out costs in Southeast Asia
By Jennifer Venkat
/ EdgeProp Singapore |
While fit-out costs were up across the region by an average of 18% percent in local currency, there were early signs of easing pressure (Photo: Albert Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - According to Cushman & Wakefield’s 2023 Asia Pacific Office Fit-Out Cost Guide, average fit-out costs across Asia Pacific have increased. In Southeast Asia, Singapore has the most expensive fit-out cost.
Persistent inflation, tight labour markets, and ongoing supply chain delays have contributed to the surge in fit-out costs. “Cost is clearly a high priority for occupiers, as evidenced by the continued 0.8% q-o-q increase in CBD Grade A office rents in 1Q2023,” says Grant Carter, head of project & development services Singapore at Cushman & Wakefield.
Major occupiers are absorbing the fit-out costs to improve return-to-office rates. While fit-out costs were up across the region by an average of 18% in local currency (7% in US dollar terms), there were early signs of easing pressure.
According to Carter, occupiers are still trying to fully comprehend the impacts of new flexible working practices on their space requirements and fit-out design to boost collaboration and innovation while providing space for individual-focused work.
“With a flight to quality and user experience, best-in-class fit-outs need to simultaneously consider several key factors: workplace strategy and change implementation, technology, sustainability and ESG factors to ensure that their spaces are optimized for employee experience,” he adds.
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