JLL warns Asia Pacific office fit-out costs keep rising

JLL has published an Asia Pacific office fit-out costs guide covering 27 cities across 14 countries.

The report found fit-out costs continue to rise across much of the region as labour shortages, higher materials prices, and increasingly complex mechanical, electrical, and technology systems put pressure on project budgets.

Geopolitical risk has also re-emerged as a significant factor in cost planning. Conflict in the Middle East and related disruption risks have added fresh volatility to global energy markets, with knock-on effects for Asia Pacific economies that rely heavily on imported energy, petrochemicals, and other energy-intensive materials.

According to the guide, the regional average fit-out cost is USD $1,550 per square metre, with year-on-year increases of 2% to 5% in local currency terms. Cost differences between cities remain wide, making city-level planning more important for occupiers and investors.

Tokyo ranked as the most expensive city in Asia Pacific for office fit-outs, followed by Singapore and major Australian cities. Seoul and Taipei sat in the middle of the range. Cities in India, Mainland China, and parts of Southeast Asia remained comparatively cheaper, although positions vary notably even within the same country.

Higher-cost markets such as Japan, Singapore, Australia, and New Zealand were linked to labour shortages and tougher workplace standards. In lower-cost markets, currency movements rather than weaker input costs were often the main reason projects appeared cheaper in US dollar terms.

Limited project pipelines in some locations have also increased competition among contractors and held back pricing. That has added another layer of complexity for companies comparing office investment costs across regional portfolios.

Martin Hinge, Executive Managing Director of Project and Development Services for JLL Asia Pacific, said the gap between markets means broad regional averages are of limited use for decision-making.

"Fit-out costs across Asia Pacific continue to vary widely versus other geographies. High-cost markets including Japan, Singapore, Australia, and New Zealand reflect labour shortages and high performance standards, while India, Mainland China, and parts of Southeast Asia remain more cost-competitive in US$ terms-often influenced by currency movement rather than reduced input costs. Limited project pipelines and increased competition have also constrained pricing in certain markets, reinforcing the importance of city-level analysis over regional averages," Hinge said.

Cost pressures

Contractors across Asia Pacific are increasingly pricing in uncertainty around energy, procurement, and supply chains. The guide found that 68% of Asia Pacific cost leaders identified pricing pressure on steel and copper as a primary concern.

That trend is feeding into procurement decisions and risk premiums. Multinational occupiers are being pushed towards dual-currency analysis and more localised procurement planning as exchange-rate movements distort project budgets and make headline comparisons harder to interpret.

Daniel Malacchini, Head of Cost Advisory & Cost Management PDS, Asia Pacific, JLL, said the impact of geopolitics is becoming more visible in client discussions.

"The spectrum of costs reinforces the importance of city-level benchmarking when making investment and location decisions across Asia Pacific. Increasingly, we are having more discussions on the impact of geopolitics and access to supply chains when assessing cost risk and appropriate mitigations for our clients," Malacchini said.

Workplace demands

The report also pointed to changing occupier expectations around office design and energy use. It found that 88% of Asia Pacific markets are seeing more enquiries about sustainable fit-outs, while 46% of organisations are actively reducing energy consumption.

That shift reflects a broader move by occupiers to treat workplace resilience, technology systems, and energy performance as part of risk management rather than optional upgrades. As a result, design choices made early in a project can have a greater effect on overall cost and delivery risk.

This is increasing the need for more detailed planning at the outset of office projects, especially in markets where imported materials, exchange rates, and specialist labour all play a significant role in final pricing.

Shweta Choudhari, Director, Research and Strategy, Work Dynamics, Asia Pacific, JLL, said the regional picture has become harder to navigate even where broader economic conditions have stabilised.

"Executing office fit-out projects throughout Asia Pacific has become increasingly intricate. Although economic stability returned to certain areas during 2025 and into early 2026, the interplay of global and regional macroeconomic challenges now affects cost predictability, construction feasibility, and schedule delivery at the local level. Recognising how these dynamics shape market conditions across Asia Pacific has become essential for successful project planning and financial forecasting," Choudhari said.