Office fit-out cost growth moderates to 2.3% in 2023

Hong Kong is amongst the most expensive markets for fit-outs in APAC.

The average fit-out cost for offices in Hong Kong increased by 2.3% to $1040 (US$133) per sq ft, decelerating from the 8.3% increase in 2022.

According to JLL, Hong Kong remains one of the most expensive markets for fit-outs in APAC, ranking ninth overall.

In APAC, office fit-out costs have continued to rise amidst ongoing inflationary pressures, higher commodity prices, and increased construction costs.

The average office fit-out cost across APAC increased 0.5% YoY, with the average cost per sq ft rising to $843.55 (US$107.86) from $842.06 (US$107.67) in 2022.

In 2024, JLL expects fit-out costs in Hong Kong to grow within 3%.

“Hong Kong’s office leasing momentum is expected to remain soft this year due to ongoing geopolitical tensions and the global economic downturn. It would affect the demand for office design and construction. Meanwhile, the recent approval of the Supplementary Labour Scheme aiming to alleviate talent shortage will ease pressure currently being exerted by increasing labour costs”, Ryan Wong, Head of Project Development Services at JLL in Hong Kong, said.