- Five Greater China cities are ranked in the top 20 most expensive office fit out markets in Asia Pacific
- Hong Kong ranks as eighth most expensive fit out market in Asia Pacific, remains most costly in Greater China
Cushman & Wakefield’s Asia Pacific Office Fit Out Cost Guide 2026 highlights a clear shift in regional market dynamics, with sentiment strengthening and activity levels improving across several key markets. Contractor confidence has risen year-on-year, with 70% of respondents to the firm’s annual Contractor Sentiment Survey anticipating improved conditions in 2026. This positive sentiment is further supported by the stronger‑than‑expected 92 million square feet of office absorption in 2025 and a tightening construction pipeline outside India.
Of the 180 survey respondents, nearly two thirds reported project backlogs of around six months, reflecting improving project delivery conditions across the region. While Japan and Indonesia remain outliers with longer backlogs, most markets expect stabilization or slight improvement in delivery timelines in 2026. This alignment between contractor sentiment and strengthening occupier demand points to a more balanced and active project environment emerging across Asia Pacific.
Tom Gibson, President, Project & Development Services and Sustainability, APAC & EMEA, Cushman & Wakefield, said: “Across Asia Pacific, fit out and project delivery conditions are improving, with contractors reporting more balanced workloads, strengthening pipelines and better visibility over labor and materials availability. As construction pipelines tighten in several major cities, competition for high quality space will intensify, making early planning and disciplined project execution even more critical. These shifts are prompting organizations to restart workplace upgrades and portfolio transformation efforts. Looking ahead, we expect growing demand for high quality, experience-led fit outs as occupiers prioritize more efficient, future ready workplaces across the region.”
Fit Out Cost Movements (Year-on-Year, 2025–2026)
The 2026 Guide reported a divergence in city level fit out costs (measured in US$ per sq ft) across the region:
- Costs rising: Japan and Taipei posted the largest year-on-year increases (Tokyo: US$215 vs US$195; Taipei: US$145 vs US$110).
- Costs easing: The Chinese mainland and South Korea saw declines (Shenzhen: US$87 vs US$94; Seoul: US$130 vs US$156).
- Costs steady: Singapore (US$140) and Hong Kong (US$160) remained largely unchanged
These cost movements reflect evolving local construction dynamics and broader economic adjustments influencing material, labor and delivery markets across Asia Pacific.
APAC Office Market Dynamics
Even as office demand across APAC surged in 2025, Cushman & Wakefield also noted a substantial contraction in new office supply outside India. Development pipelines have moderated sharply due to rising construction costs and reduced project feasibility, intensifying competition for prime space. As supply tightens, vacancy rates in high quality buildings - particularly in core CBD locations - are expected to trend lower, reinforcing the ongoing flight to quality amongst occupiers.
Dominic Brown, report author and Head of International Research, APAC & EMEA, Cushman & Wakefield, commented: “After a resilient 2025, the Asia Pacific office market is now transitioning into a more stable phase, supported by a gradual return of business confidence. Coupled with the tightening supply pipeline outside India, which is reshaping the competitive landscape for high quality space, these collective shifts indicate a meaningful turning point for the region in 2026, with both occupiers and investors positioned for renewed momentum.”
Meng Zhao, Head of Project & Development Services, North China, Cushman & Wakefield, highlighted: “Amid an increasingly complex market environment, office fit-out costs and capital expenditure decisions have become central issues for corporate real estate management. Clear cost tiers and strong regional differentiation across Asia Pacific make precise budgeting, timing decisions and value optimization more critical than ever. Our new report provides practical reference points for fit out planning, location strategy and ESG implementation.”
Johnson Kong, Head of Project & Development Services, East China, Cushman & Wakefield, added: “Cushman & Wakefield is a trusted partner for occupiers and investors managing CapEx and project delivery across Asia Pacific. Leveraging a global network and deep local expertise, our firm helps clients optimize capital allocation through integrated design, project and construction management services — delivering projects on time and on budget, while providing data-driven, lifecycle-wide strategic advice.”
Michael Wu, Head of Project & Development Services, South China, Cushman & Wakefield, noted: “Asia Pacific’s office supply-demand dynamics continue to be reshaped in 2026. While demand is steadily recovering, structurally constrained supply is intensifying competition for prime assets in core locations. Our new report covers comprehensive fit-out data across 33 Asia Pacific cities. Hong Kong remains the most expensive market in Greater China, with Shanghai and Beijing leading the Chinese mainland. Guangzhou and Shenzhen show relatively stable cost performance, alongside moderate inflation expectations and manageable delivery timelines — making this a critical window for corporate CapEx planning."
Please click here to download the full report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2025, the firm reported revenue of $10.3 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.
