Singapore ranked priciest city for office fit-out in APAC

Average fit-out costs in the city reached over US$2,000 per sqm.

Singapore has emerged as the most expensive city for office fit-out in Asia-Pacific, with average costs reaching US$2,029 per square metre, according to Knight Frank.

The firm’s Asia-Pacific Fit-Out Cost Guide 2026 found Singapore ahead of Tokyo at US$1,994 psm and Taipei at US$1,593 psm, while Phnom Penh ranked as the most affordable at US$375 psm. The report tracks workplace fit-out costs across 23 cities using data collected in Q4 2025.

Knight Frank said fit-out costs across the region are expected to rise by 2–5% over the next 12 months, driven primarily by structural factors rather than broad-based inflation. These include tight construction labour markets, increased competition for skilled trades and stricter sustainability and compliance requirements.

The consultancy noted that environmental, social and governance (ESG) considerations are now a baseline expectation rather than an optional upgrade. In cities such as Singapore and Sydney, ESG-aligned fit-outs are becoming standard, increasing demand for specialist capabilities in sustainability systems and smart workplace technology.

Knight Frank also highlighted a growing shift towards the Design & Build (D&B) delivery model, particularly for small- to mid-sized offices. The model consolidates design and construction under a single contract, improving cost certainty and reducing project timelines by an estimated 20–30%.

According to Tim Armstrong, Global Head of Occupier Strategy and Solutions, Knight Frank, occupiers are facing a more complex decision-making environment, with cost pressures stemming from labour, sustainability requirements and potential trade-related disruptions to materials and supply chains.

In Singapore, Knight Frank attributed the city’s top ranking to rising labour costs, limited contractor capacity and stringent building standards. High-specification fit-outs command a significant premium, reflecting its position as a regional business hub where occupiers prioritise workplace quality.

Elsewhere, India’s major office markets remain among the most cost-competitive, while cities such as Jakarta, Kuala Lumpur, Manila and Bangkok are seeing gradual cost increases as quality expectations and regulatory standards rise.

Knight Frank added that currency volatility and import duties remain key risks, prompting occupiers to adopt more proactive procurement strategies, including sourcing materials locally to reduce both costs and carbon exposure.

Overall, Knight Frank said occupiers are increasingly integrating fit-out planning into broader portfolio strategies, as structural cost pressures continue to reshape workplace investment decisions across Asia-Pacific.