Singapore Office Space Cheaper To Fit Out Than Hong Kong’s
SINGAPORE – Office properties in the city-state are less expensive to prepare for occupation than in Hong Kong, but it’s still the priciest to fit out in Southeast Asia, according to a report from Cushman & Wakefield (C&W) published on Thursday afternoon (4 May, SGT).
Based on the real estate consultancy’s 2023 Asia Pacific Office Fit-Out Cost Guide, office fit out costs in Singapore averages US$134 psf compared to US$140 psf in Hong Kong, which places the Chinese territory at rank 10.
Across the region, the Japanese cities of Tokyo, Osaka, and Nagoya dominated the top three, with respective average office fit out costs of US$201 psf, US$196 psf, and US$192 psf. Completing the top five are Australia’s Canberra (US$164 psf) and Seoul in South Korea (US$156 psf).
New Zealand’s Auckland (US$151 psf) bagged the 6th place, followed by Australia’s Sydney (US$146 psf). Tied at the 8th spot are Melbourne and Busan with average office fit out cost of (US$143 psf). Finally, Hong Kong clinched the 10th place at US$140 psf.
Cushman said an office fit out refers to the process of designing and building a workspace to meet a tenant’s specific needs, including everything from mechanical and electrical systems to furniture and equipment.
Estimated costs provided in the property consultancy’s guide are indicative of market averages based on certain assumptions. Apart from furniture and audio visual/IT systems, it covers professional fees, construction works, mechanical & electrical works, reinstatement and retrofit, as well as other miscellaneous expenses.
Factors that can influence office fit out cost include:
Location: The cost of materials and labour, and complying with regulations vary greatly by country and area.
Office Type: The type of workspace being fitted out, such as an open plan office or traditional workspace, can affect the cost.
Quality of finishes: The quality of finishes, like wall coverings and flooring, can significantly impact the cost.
Design Complexity: The more intricate the design, such as bespoke furniture or lighting, the higher the cost.
Compliance Requirements: Depending on the nature of the business and the industry, certain legal requirements may need to be fulfilled, such as fire safety regulations, which can increase costs.
Mechanical and electrical services: The need for additional mechanical and electrical services, like data cabling or air conditioning, can increase the total cost.
Project management and professional fees: Professional fees, such as project management fees and architect fees, can be a hefty part of the total cost.
Timeline and delivery requirements: Tight timelines or delivery requirements can add costs due to expedited or overtime labour.
Contingencies: Contingency costs are an essential part of any budget to account for unforeseen expenses or changes during the project.
Green requirements: eco-friendly building standards or sustainability requirements may boost the cost but offer long-term savings in terms of maintenance costs and power usage.
