Contractor confidence across the Asia Pacific region is on the rise, with 70% of respondents in Cushman & Wakefield’s annual Contractor Sentiment Survey anticipating improved market conditions in 2026. This optimism is bolstered by a stronger-than-expected absorption of 92 million square feet of office space in 2025 and a tightening construction pipeline outside India.
The survey, which included 180 respondents, revealed that nearly two-thirds reported project backlogs of around six months, indicating improving project delivery conditions. Whilst Japan and Indonesia face longer backlogs, most markets anticipate stabilisation or slight improvement in delivery timelines next year. Ranee Ng, Executive Director and Head of Project & Development Services in Hong Kong, noted a shift towards flexible designs and sustainable materials, highlighting the demand for efficiency and innovation in high-density environments.
The 2026 Asia Pacific Office Fit Out Cost Guide from Cushman & Wakefield shows a divergence in fit out costs across the region. Japan and Taipei experienced the largest year-on-year increases, with Tokyo’s costs rising to US$215 per square foot from US$195, and Taipei’s to US$145 from US$110. Conversely, costs in Mainland China and South Korea have eased, whilst Singapore and Hong Kong remain steady.
Despite the surge in office demand, new office supply outside India has contracted, intensifying competition for prime space. Dr Dominic Brown, Head of International Research APAC & EMEA, stated that the Asia Pacific office market is transitioning into a more stable phase, with both occupiers and investors poised for renewed momentum in 2026.
