ASIA PACIFIC
Fit-out cost landscape across APAC
The diverse Asia-Pacific markets tell very different fit-out stories. The regional leaders for corporate occupiers remain Singapore, Hong Kong and Indian hub cities like Bangalore – but costs and their drivers vary significantly.
India
India’s office market: APAC’s fastest‑growing engine of corporate expansion
India has emerged as the fastest‑growing office market in APAC, powered primarily by the rapid expansion of Global Capability Centres (GCCs). Absorption levels remain exceptionally strong, with robust pre‑leasing activity offering rare forward visibility into future demand. Prime office rents are recording some of the highest growth rates in the region, reflecting sustained occupier confidence.
A new wave of tech‑driven occupiers is reshaping development patterns. These firms increasingly prioritise campus‑style, innovation‑focused environments, prompting the rise of large, multi‑building tech districts. Developers are responding with integrated, ESG‑certified, mixed‑use ecosystems that combine office space with residential, retail, and hospitality components.
India’s major cities are undergoing significant infrastructure transformation – metro network expansions, new expressways and improved airport connectivity are redefining commercial corridors and unlocking entirely new office districts. This is supported by a substantial development pipeline, with 40M+ ft2 of new supply annually through 2026 across key markets.
Australia and New Zealand
Growing demand across Australian cities
Sydney is the most-expensive Asia-Pacific market for premium fit outs, at A$7,221 per m2. This reflects a wider trend across Australia, where corporate occupier demand is returning after some weaker years.
However, there is high demand on the supply chain from major programmes, from Olympic preparation in Queensland, to data centres and infrastructure in Perth and defence work in Adelaide. This, along with a general labour shortage, is pushing up prices, though outside of Sydney fit out costs remain relatively low when compared internationally. Even with the Olympic demand, Brisbane’s high-specification fit out costs are only A$3,168 per m2, under half of the rate in Sydney.
“A supply crunch in desirable locations is pushing occupiers to innovate with how they approach and deliver fit-outs. The Australian market has not traditionally embraced modern methods of construction, but increasingly clients want to look at every avenue to drive efficiency. This includes exploring design for manufacture approaches, and other forms of efficient and cost-saving delivery techniques.”
Barry Gater, Occupier and Portfolios Lead, ANZ
The pandemic-related pause in development that many cities experienced is now causing the shortage in available commercial space, and many clients in Sydney are looking increasingly at staying in their existing spaces and renovating. However, this traditionally comes with a fit-out cost premium and longer timescales, likely to keep Sydney towards the top of our cost rankings.
East Asia
Hong Kong repositions
Cities like Tokyo, Kuala Lumpur and Singapore have benefitted in recent years from a period of transition in Hong Kong which has seen the city align more closely with mainland China.
Meanwhile, Japan has seen greater international investment, both due to its own strengths – such as its educated population and forward-looking approach to technology – and also as an alternative access point for west pacific markets. Demand for Grade-A space in Japan is now significantly outstripping supply, helping to push premium fit-out costs in Tokyo and Osaka up to JP¥729,406 and JP¥706,834 per m2 respectively. This trend is true in lower-cost markets too, such as Kuala Lumpur in Malaysia (RM6,908 per m2), which has seen an influx in technology and data centre clients, with the city’s multilingual business environment attracting clients from both China and the West.
Yet now, with markets like Singapore struggling to accommodate the demand for Grade-A space, and positivity starting to return in Hong Kong, this could represent a reversal in fortunes in the short to medium term. Hong Kong’s labour market continues to keep costs relatively high, at HK$21,686 per m2 for an average medium-specification fit out – but this is significantly lower than equivalent Japanese markets, and the return of major investment from financial players like Jane Street and expansion of major investment banks in Hong Kong could be the start of a turnaround.
“The Asia-Pacific fit‑out landscape is typically diverse, but longer‑term, cross‑regional trends are beginning to solidify. Many emerging markets remain vibrant and continue to grow, ranging from technology companies expanding operations in India and Malaysia to manufacturing in Vietnam benefitting from global supply‑chain diversification.”
Lee Seng Han, APAC Sector Lead
Businesses in the technology and energy industries have been investing heavily there as an offshoring hub for everything from call centres to HR and finance teams. There is also a growing financial services and life sciences market – benefitting from the comparatively low global fit-out costs (PH₱94,704 per m2 for medium specification) and high standards of delivery.
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