- Greater China accounts for five of the top 20 most expensive office fit-out markets in the Asia-Pacific region
- Hong Kong ranks as the eighth most expensive fit-out market in Asia-Pacific and remains the most costly market in Greater China
BeijingMay 7, 2026 /PRNewswire/ — Cushman & Wakefield, a globally renowned real estate services and consulting firm, recently released its report “2026 Asia Pacific Office Fit-Out Cost Guide”. The report reveals a significant shift in the Asia-Pacific market landscape—strengthened market sentiment and improved activity levels in several key markets. Contractor confidence has risen compared to the same period last year, with the company’s annual contractor sentiment survey showing that 70% of respondents expect further market improvement in 2026. This positive sentiment is supported by impressive data exceeding market expectations: net office absorption in the Asia-Pacific region reached 92 million square feet in 2025.
Among the 180 respondents, nearly two-thirds reported a project backlog of approximately six months, reflecting improving project delivery conditions across the Asia-Pacific region. Except for Japan and Indonesia, where backlogs are longer, most markets expect delivery times to stabilize or slightly improve in 2026. The alignment between contractor sentiment and strengthening tenant demand signals a move toward a more balanced and dynamic project environment in the Asia-Pacific region.
Tom Gibson, President of Project & Development Services and Sustainability, Asia Pacific, Europe, Middle East and Africa at Cushman & Wakefield, stated that office fit-out and project delivery conditions in the Asia-Pacific region continue to improve. According to contractor feedback, their workloads are becoming more balanced, pipeline supply is steadily increasing, and the predictability of labor and material supply has improved. As pipeline supply tightens in several major cities, competition for premium space will intensify, making early planning and rigorous project execution crucial. These changes are prompting organizations to restart workplace upgrades and portfolio transformations. Looking ahead, as tenants prioritize creating more efficient, future-ready workplaces, we expect sustained growth in demand for high-quality, experience-driven fit-outs across the Asia-Pacific region.
Fit-Out Cost Changes (Year-over-Year, 2025→2026)
The “2026 Asia Pacific Office Fit-Out Cost Guide” presents divergent trends in office fit-out costs (in USD per square foot) across Asia-Pacific cities:
- Cost increases: Japan and Taipei recorded the largest year-over-year increases (Tokyo: $215/sq ft vs. $195/sq ft; Taipei: $145/sq ft vs. $110/sq ft)
- Cost decreases: Costs fell in Mainland China and South Korea (Shenzhen: $87/sq ft vs. $94/sq ft; Seoul: $130/sq ft vs. $156/sq ft)
- Cost stability: Singapore ($140/sq ft) and Hong Kong Special Administrative Region ($160/sq ft) remained largely flat
These cost changes reflect evolving construction industry dynamics in the Asia-Pacific region and broader economic adjustments affecting materials, labor, and delivery markets.
Asia-Pacific Office Market Dynamics
Despite a significant surge in office demand across the Asia-Pacific region in 2025, Cushman & Wakefield notes a notable contraction in new office supply, except in India. Development pipeline supply has slowed sharply due to rising construction costs and reduced project feasibility, further intensifying competition for premium space. As supply tightens, vacancy rates for high-quality buildings, especially in core CBD areas, are expected to continue declining, reinforcing the trend of tenants migrating to higher-quality properties.
Dr. Dominic Brown, Head of International Research at Cushman & Wakefield and author of the report, stated that after demonstrating resilience in 2025, the Asia-Pacific office market is entering a more stable phase, moving forward supported by a gradual recovery in business confidence. The ongoing tightening of pipeline supply, except in India, will reshape the competitive landscape for premium space. These combined changes indicate that 2026 will be a pivotal turning point for the Asia-Pacific region, with both tenants and investors poised to capitalize on a new wave of growth momentum.
Top 10 Cities with the Highest Average Office Fit-Out Costs in the Asia-Pacific Region
Six Most Expensive Office Fit-Out Cities in Greater China
Zhao Meng, Head of Project & Development Services, North China at Cushman & Wakefield, stated that in the current complex and volatile market environment, office fit-out costs and capital expenditure decisions have become core issues for corporate real estate management. The tiered fit-out costs across major Asia-Pacific cities and distinct regional characteristics, combined with variables such as different city and grade-level fit-out investments, future price trends, project delivery timelines, and rental changes, make it crucial for companies to accurately plan budgets, seize timing for location decisions, and maximize investment value. We hope this guide provides practical references for companies in fit-out planning, site selection, and ESG implementation, helping them make more robust and value-driven decisions amid market opportunities.
Kong Fanbao, Head of Project & Development Services, East China at Cushman & Wakefield, stated that as a trusted partner for tenants and investors in managing capital expenditure and project delivery across the Asia-Pacific region, Cushman & Wakefield consistently provides forward-looking insights into market changes. Leveraging its global network and local expertise, the firm optimizes capital allocation for clients, offering integrated design, project, and construction management services. We are committed not only to delivering projects “on time and on budget” but also to providing data-driven professional analysis and strategic advice throughout the project lifecycle, creating office space solutions that enhance operational efficiency and maximize investment returns.
Wu Qingzhou, Head of Project & Development Services, South China at Cushman & Wakefield, stated that in 2026, the supply-demand landscape of the Asia-Pacific office market continues to reshape, with steady recovery on the demand side and structural contraction on the supply side. Competition for premium assets in core locations is intensifying, and the regional divergence and trend forecasting of fit-out costs have become core considerations for corporate office layout planning. This guide covers comprehensive fit-out data from 33 Asia-Pacific cities. Hong Kong remains the most expensive fit-out market in Greater China, with Shanghai and Beijing leading mainland cities, while Guangzhou and Shenzhen show stable costs. Combined with moderate regional price increase expectations and manageable delivery timelines, the current period represents a critical window for companies to plan capital expenditure.
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