Singapore is Southeast Asia’s most expensive city for an office fit out

It costs USD86 per sq ft to fit out a basic hybrid office in Singapore.

According to Cushman & Wakefield’s 2023 Asia Pacific Office Fit Out Cost Guide, major occupiers are absorbing the higher fit-out costs brought about by the current economic challenges as they aim to encourage more occupiers to return to the office. 

In Southeast Asia, Singapore ranks as the most expensive city for office fit outs, requiring USD86 per sq ft for a basic hybrid fit out. Manila takes the second spot with USD70 per sq ft, then Kuala Lumpur with USD63 per sq ft.

The report says that while fit-out costs were up across the region by an average of 18 percent in local currency (7 percent in US dollar terms), there were early signs of easing pressure.

“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 Q1 2023. However, we have observed positive attitudes from our clients as we assist them in focusing their design and capital expenditure on creating people and client-focused areas that activate spaces for hybrid ways of work” said Grant Carter, Head of Project & Development Services Singapore at Cushman & Wakefield.

Occupiers are still trying to fully comprehend the impacts of new flexible working practices on their space requirements as well as fit-out design to boost collaboration and innovation while also providing space for individual-focused work. 

“With a flight to quality and user experience, best-in-class fit-outs now need to simultaneously consider several key factors: workplace strategy and change implementation, technology, sustainability and ESG factors to ensure that their spaces are optimised for employee experience.” he added.

Get the full report here. https://www.cushmanwakefield.com/en/singapore/insights/office-fit-out-cost-guide#tips