Media365
Singapore is the most expensive city in the Asia-Pacific region to outfit an office, driven by increased labour costs, a shortage of contractors and strict building standards, according to real estate consultancy Knight Frank.
The city had the highest average fit-out cost at US$2,029 per square metre – ahead of Tokyo (US$1,994) and Taipei (US$1,593) – in the firm’s survey of 23 cities across Australasia, East Asia, Southeast Asia and India. It was also the most expensive place to set up an office regardless of specification level, topping the list for basic, standard and premium set-ups, Knight Frank said in a report published on Wednesday.
Setting up a premium office in Singapore costs US$3,117 per square metre, commanding “a substantial premium relative to the rest of Southeast Asia” and “underscoring its position as a regional business and financial hub”, the report said.
Hong Kong ranked eighth, with an average of US$1,292 per square metre, while the major mainland Chinese cities of Beijing, Shanghai, Guangzhou and Shenzhen all came in at US$929 per square metre, placing them 11th.
As a major financial hub, Singapore’s appeal has grown in recent years as a wave of Chinese businesses expanded overseas. As a result, its vacancy rates have been falling and its rents rising, especially in grade A office space in its central business district.
The vacancy rate for such offices fell by 0.3 percentage points to 6.7 per cent in the last quarter of 2025 from a quarter earlier, according to Savills. At the same time, average rents rose for a seventh straight quarter, gaining 0.3 per cent from a quarter earlier to S$9.96 (US$7.80) per square foot, compared with a 0.8 per cent rise in the previous quarter. Office rents increased by 1.8 per cent overall in 2025, surpassing the 1.1 per cent growth in 2024.
