Singapore has emerged as the most expensive city for office fit-out in the Asia-Pacific region, according to Knight Frank’s Asia-Pacific Fit-Out Cost Guide 2026. With an average cost of $2,029 per square metre, Singapore surpasses Tokyo and Taipei, which stand at $1,994 and $1,593 per square metre, respectively. This ranking highlights the varied investment conditions across the region, with Phnom Penh at the lower end at $375 per square metre.
The guide, which covers 23 cities, anticipates a 2-5% rise in fit-out costs over the next year due to factors such as a tight construction labour market and increasing sustainability requirements. These structural pressures are becoming more significant than general inflation, which has eased in many areas.
Sustainability is now a standard expectation, with green building certifications and energy monitoring driving up baseline costs. In cities like Singapore and Sydney, ESG-aligned fit-outs are becoming the norm, increasing demand for specialists in sustainability systems.
A shift towards the Design & Build (D&B) model is noted, particularly for offices ranging from 900 to 2,800 square metres. This model offers cost certainty and can reduce project timelines by 20-30%, which is crucial in volatile markets.
Tim Armstrong of Knight Frank advises occupiers to engage early and build flexibility into procurement strategies to manage cost and delivery risks. Christine Li adds that labour constraints and ESG requirements are raising the cost floor, whilst global trade dynamics introduce additional uncertainties.
In Singapore, high labour costs and stringent standards maintain its position at the top of the cost table, reflecting its status as a financial hub. Meanwhile, India’s major markets remain cost-competitive, and cities like Jakarta and Manila are seeing rising costs due to quality expectations and regulatory demands.
