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

Tengah EC is a smart, green condominium near the city’s CBD, offering a healthier lifestyle and easy access to the city center. It’s the first Tengah Town EC of its kind in the West region.

Fit-Out Costs across Asia Pacific have risen sharply, due to rising inflation, limited labour markets, and persistent supply chain delays. Grant Carter, head of project & development services Singapore at Cushman & Wakefield, reports that CBD Grade A office rents saw an increase of 0.8% q-o-q in 1Q2023.

Major occupiers are therefore taking the necessary steps to absorb the cost of fit-outs to improve return-to-office rates. The average cost increase across the region was 18% in local currency (7% in US dollar terms), although there are some positive signs of easing pressure.

For occupiers to get the most out of their fit-outs, there must be a comprehensive understanding of the impact that new flexible working practices have on space requirements and design. Elements such as workplace strategy, change implementation, technology, sustainability, and ESG factors should all be taken into account in order to optimise the workspace and enhance the employee experience.

Singapore has the highest fit-out costs in Southeast Asia, according to Cushman & Wakefield’s 2023 Asia Pacific Office Fit-Out Cost Guide. This is evidence of just how much pressure there is to remain competitive and cost-efficient in the region.

Occupiers therefore need to stay ahead of the curve and explore innovative ways to make the most of their investments by ensuring that the factors mentioned above are taken into account. Doing so will enable them to stay up-to-date with the latest trends and create an environment which is primed for collaboration, creativity, and performance.