Most Expensive Market In Greater China For Office Fit-out Costs

HK Most Expensive Market In Greater China For Office Fit-out Costs

HONG KONG – The Chinese territory was named as the world’s 5th priciest market for office fit-out costs and the most expensive in Greater China, according to a report by Cushman & Wakefield that was published on MediaOutReach on Tuesday evening (12 April, SGT).

According to Cushman’s Asia Pacific Office Fit-out Cost Guide 2022, office fit-out costs in Hong Kong averaged US$138 psf.

“The report reveals that six Greater China markets figure in the top 20 most expensive office fit-out markets in Asia Pacific. Hong Kong remains the costliest market in Greater China for the third consecutive year, followed by Shenzhen, Beijing, Guangzhou, Shanghai, and Taipei,” said David Shi, Head of Project & Development Services for China at Cushman & Wakefield.

The property consultancy noted that across mainland China, office tenants are increasingly looking for commercial properties with green and wellness certifications. In fact, they are engaging consultants early in the early project stage to provide inputs in project programming, budget setting, and design specifications.

“Hong Kong occupiers traditionally prefers basic hybrid mode, while there is an increasing trend and greater need for more collaborative hybrid such as incorporating workspace into the break-out area and pantry space,” Shi noted

Moreover, Bryant Cheung, Head of Project & Development Services for Hong Kong at Cushman & Wakefield, revealed that IT and AV facilities (such as video conferencing) are in greater demand within offices for improved remote communications amidst the COVID-19 pandemic.

“On the other hand, corporate relocation is still prevalent, despite many occupiers remaining cautious due to the capital expenditure requirements, as the city’s fit-out cost ranking number 5 among APAC cities.”

“Looking ahead, corporate requirements and employees’ preference for greener practices will likely further push for greater ESG adoption, such as green building certifications and incorporating sustainability elements into their offices,” he added.

Meanwhile, there are only four markets with higher office fit-out costs than Hong Kong. These are Tokyo (US$166 psf), which claimed the number one spot, followed by Osaka (US$161 psf), Nagoya (US$157 psf), and Auckland (US$139 psf).

Sydney (US$135 psf) was ranked 6th, followed by Singapore (US$134 psf) and Melbourne (US$132 psf). Brisbane (US$129 psf) secured the 9th place, while Adelaide and Perth (U$124 psf) were tied at the 10th spot.

Free Finding Service