Hong Kong office fit-out costs rank 4th in Asia Pacific: JLL

HONG KONG, 20 May 2025 – In 2024, the average office fit-out cost in Hong Kong was approximately USD 133 per sq ft (around HKD 1,040 per sq ft), maintaining the same level as in 2023. This ranks Hong Kong 28th globally and 4th in the Asia Pacific, following Tokyo, Singapore, and Sydney, according to JLL's Global Office Fit-Out Costs Guide 2025.

To benchmark costs across regions, JLL evaluated a standardised project in a contemporary Central Business District (CBD) office building. The findings reveal that New York is the most expensive market for fit-out costs globally. Tokyo, ranked 16th worldwide, has the highest fit-out costs in the Asia Pacific, averaging USD 224 per sq ft.

Ryan Wong, Head of Project and Development Services at JLL in Hong Kong, said: "Despite rising labour costs, material costs remained relatively stable, and competition to secure projects intensified. These factors contributed to the stability of office fit-out costs in Hong Kong last year. The slowdown in fit-out activity since early this year has further intensified market competition. Contractors are increasingly willing to lower their bids to secure projects, a trend expected to persist throughout the second half of 2025. We anticipate a notable reduction in fit-out costs in 2025 compared to last year."

According to JLL's analysis, as the offices sector regains its central role in commercial real estate, countries in Asia Pacific have the highest proportion of organisations planning to increase fit-out investment. In Asia Pacific, countries such as India and Australia have a greater proportion of organisations planning to increase investment in space design and fit-outs over the next five years (74% and 72%, respectively), significantly higher than the global average of 59%.

JLL attributes expected fit-out investments to various macroeconomic factors influencing construction costs. In India, despite a strong construction market and overall economic growth, imported material costs are rising due to the rupee's decline against the US dollar, partly driven by US tariffs. In Australia, while inflation has stabilised over the past 12 months, worker shortages and wage growth in competitive markets have increased labour costs in the construction sector.

"Asia Pacific has the lowest average fit-out costs for offices globally at USD 136 per sq ft. While Asia Pacific continues to offer competitive fit-out costs compared to other regions, the increasing focus on technology integration and hybrid work models is driving investment in high-quality workspaces," said Martin Hinge, Executive Managing Director, Projects & Development Services, Asia Pacific. "Furthermore, we see this trend gaining momentum, reflected in the growing demand for sustainable solutions and adaptable office layouts across the region."

Asia Pacific spends more on AV and technology compared to other regions, reflecting the growing emphasis on technology to enhance efficiencies and support hybrid working practices. Builders' Works remains the largest component of fit-out costs globally, except in Latin America.

Continued demand for Grade A office space, coupled with a lack of supply, is shifting the focus towards existing office buildings and their long-term value for both occupiers and owners. Globally, 66% of organisations plan to increase investment in sustainability performance over the next five years, with India leading at 77%. While a significant proportion of sustainable fit out costs is attributed to mechanical and electrical (M&E) services, accounting for 26% of costs in Asia Pacific, such upfront investments can yield substantial long-term savings, with JLL research showing that investing in M&E upgrades can reduce operational energy costs by 10-40% depending on the level of investment.

With the supply gap for Grade A offices expected to widen, there will be increased focus on lease renewals and upgrading existing tenancies and buildings as an alternative. JLL also sees scope for more retrofit projects across the region as supply tightens. Amid an uncertain economic and geopolitical environment, early planning for leases and decisive investment in existing buildings will help landlords and occupiers to factor in and manage associated costs.

JLL's Global Office Fit-Out Costs Guide analysed data from 68 cities in 40 countries worldwide, uncovering key findings on global cost variations, cost drivers, sustainable fit out demand, and market sentiment.