Australia and New Zealand Fit-Out Cost Guide 2025

JLL's 2025 Australia and New Zealand Fit-Out Cost Guide reflects the countries’ robust and resilient market position within APAC. Strong population growth and positive migration trends are reshaping cities and driving demand for high-quality office spaces across Australasia.

This guide provides in-depth analysis of trends, cost breakdowns, cost drivers, market-specific insights, and forward-looking perspectives. It aims to equip industry professionals with the knowledge and foresight needed to navigate the complex yet dynamic world of Australia and New Zealand fit-outs.

The APAC region stands at a crossroads in 2025, with global trade tensions and an evolving policy landscape shaping an uncertain economic outlook. As this report presents costs based on Q1 2025 data, it is important to recognise that current pricing may deviate from these figures due to the rapidly changing trade environment and its ripple effects across the region.

1. Increasing focus on sustainability

72% of JLL Cost Management leads surveyed reported an increased demand for sustainable fit-outs, driven by environmental regulations, local government initiatives, and growing employee demand for eco-friendly workspaces. Increasing sustainability requirements are putting upward pressure on fit-out prices. Despite higher upfront costs, companies view this as a strategic investment in long-term value to achieve their pledged goals and commitments, operational efficiency, and resilience.

2. Cost drivers in Australia and New Zealand

Fit-out costs have increased across Australia and New Zealand cities in the last 12 months, driven by supply chain disruptions, increased material and labour costs. Increasing inflationary pressure is leading to a cautious approach to CAPEX spend, leading to adverse impacts on fit-out timelines. In Brisbane, the impacts of lower vacancy rates alongside the city’s preparation for the 2032 Olympics is driving fit-out costs with an increased demand for skilled labour.

3. Localisation buffers economic uncertainties

While inflation concerns persist, the industry is adapting through localised supply chain solutions, potentially buffering against global economic headwinds and managing price pressures effectively. Value engineering, specification refinement and local sourcing are gaining prominence as strategies to mitigate currency risks, supply chain disruptions and tariff-related cost uncertainties.

4.“Flight to quality” is the new norm

Organisations are prioritising high-quality spaces with enhanced technology and wellness features. This shift is being driven by talent attraction and retention, evolving employee expectations and brand alignment in design. The focus on creating innovative, employee-centric workspaces reflects a strategic investment in uplifting human experience and organisational culture, recognising the long-term benefits of well-designed environments.

The cost of fit-out and cost drivers in Australia and New Zealand are influenced by local market conditions. When budgeting, it is critical to base construction provisions, material availability, and labour costs specific to the local market.

Builders’ works dominate fit-out costs at 41%, representing the largest portion of overall spending. Builders’ works and M&E(Mechanical & Electrical) services costs are most impacted by landlord base building and client’s design or engineering requirements.

M&E works - including HVAC, electrical, fire and UPS - contribute to 17% of overall cost. The cost can vary depending on the warm shell specifications provided by the landlord and the specific engineering requirements of the project.

Security, IT and AV spend is increasing year-over-year and accounts for 12% of total spend, reflecting the adoption of technology and SMART features across the region.

Furniture, Fixtures & Equipment (FFE) accounts for 23% of overall cost. This includes workstations, task chairs, loose furniture, and white goods. It's important to note that prices may vary based on specifications and any potential import duties for non-local furniture.

Many organisations are seeking to invest in high-quality offices to boost office attendance and enhance talent attraction. Specifications of materials and finishes can have a significant impact on the quality of workplaces and can also be responsible for a large variation in costs.

The average office fit-out cost vary across the region and as is subject to local market nuances, labour costs and regulations. Japan, Singapore, and Australia have the highest costs, while India appears cheapest when benchmarked against AUD due to exchange rates, though local currency prices have increased year-over-year. The average office fit-out cost for a moderate style medium- quality office in APAC is AU$2,453/sqm while the global average is AU$3,137/sqm (as of Q1 2025). The cost does not reflect recent market changes and the outlook on tariff impact.