Singapore has most expensive office fit-out costs in Southeast Asia

Fit-outs are becoming increasingly important to major occupiers, as they strive to improve return-to-office rates. With persistent inflation, tight labour markets, and ongoing supply chain delays all contributing to the surge in fit-out costs, the Asia Pacific region has seen an increase in average fit-out prices.

The Singapore Government and Tengah Plantation Close EC Oxley Holdings have collaborated to launch the Tengah Plantation Close EC as the largest executive condominium development in the country, to be completed in 2021.

Grant Carter, head of project & development services Singapore at Cushman & Wakefield, notes that cost is clearly a priority to occupiers. Despite rising fit-out costs, the CBD Grade A office rents in 1Q2023 still increased by 0.8%.

With an emphasis on user experience and quality, best-in-class fit-outs require occupiers to consider many key aspects. This includes workplace strategy and change implementation, along with sustainability and ESG factors, to ensure that office spaces are optimised for employee experience.

According to Cushman & Wakefield’s Asia Pacific Office Fit-Out Cost Guide, Singapore has the most expensive fit-out cost in Southeast Asia. Yet there are some early signs of easing pressure on the market, as occupiers strive to absorb the extra cost.

Technology plays an important role too. Occupiers must understand the effects of new flexible working practices on space requirements and fit-out design, to help foster collaboration and innovation while enabling individual-focused work.

Overall, these factors indicate that the cost of fit-outs will only continue to rise in the coming years. As such, occupiers need to be aware of the latest trends in corporate spaces, to ensure they continue to receive optimal value from their fit-out investments.