cities in japan and australasia remain the most expensive office fit-out markets in asia pacific, hong kong ranked 9th, beijing & shanghai 13th
dec 10, 2020
shanghai, december 10, 2020 —— cities in japan and australasia continue to dominate the top 10 list of most expensive office fit-out locations in asia pacific, according to cushman & wakefield’s 2020-2021 asia pacific office fit-out cost guide. tokyo, osaka, nagoya and sydney lead the rankings, with melbourne climbing four spots to fifth this year.
in greater china, hong kong is ranked 9th, down two places from last year, as occupiers’ consideration of their space option has led to weakened demand for new fit-outs and relocations. beijing, down three places, is jointly ranked with shanghai at 13th on the list. both cities are the most expensive markets in mainland china at us$115 per square foot.
asia pacific is forecast to emerge from the downturn earlier than other regions across the globe and is well-positioned to return to strong economic growth by the end of 2020. while the region’s long-term fundamentals remain intact, the short but sharp recession will continue to echo and shape corporate decision-making into the future. effectively, trends that may have taken many years to come to full fruition are being fast-tracked.
“as a result of the global pandemic, the increases in fit-out costs seen in recent years has reversed in most markets across the region. this trend is likely to persist as corporate occupiers continue to assess their capital expenditure budgets and corporate footprint requirements,” said tom gibson, head of project & development services, asia pacific. “we are also seeing greater integration of workplace strategy expertise into the early stages of the design and fit-out process. with working lifestyles and preferences evolving following the pandemic, companies are increasingly focused on aligning their space requirements with efficient workplace strategies and hr policies to better meet their corporate business and financial goals.”
david shi, head of project & development services, china, commented, “despite significant delays and disruptions at the outset of the pandemic, greater china is one of the first few markets in the world to enter a recovery phase. with enhanced safety measures incorporated into every facet of our daily lives, coupled with a workforce that still prefers an actual office over a home office, we don’t foresee a long-term negative impact on the office construction sector. beijing and shanghai remain within the top fifteen cities in asia pacific and are the most expensive fit-out markets in mainland china.”
greater emphasis on health & safety and contingency planning, with new design trends focused on “touchless technology” and collaborative space
the focus on health and safety continues to intensify, bringing forward greater adoption of touchless technology, improved heating, ventilation, and air conditioning (hvac) and smarter cleaning practices. prolonged, enforced working from home has highlighted that productivity can be maintained, but at the cost of personal connection to colleagues and company culture. this raises questions around the optimal size and composition of the corporate footprint, while highlighting the need for ongoing investment into it and audio-visual technology for collaborative team working. all these factors are important considerations as companies remain laser-focused on costs.
mr. gibson said, “the solution is to place a greater emphasis on strategic collaboration between corporate finance, human resources, corporate real estate, and workplace strategy. companies are having to manage multiple levels of uncertainty and as a result, have a greater thirst for information. the role of the project manager remains pivotal to this solution by bringing meaningful data insights to clients, exposing them to best practices in the ‘new normal’ and assisting in making well-rounded decisions.”
about cushman & wakefield’s asia pacific office fit-out cost guide
cushman & wakefield’s asia pacific office fit-out cost guide is an essential tool to assist in corporate real estate decision-making regarding both fitting out and reinstating office space. the annual guide, which was first published in 2019, serves to assist occupiers in defining their capital planning and relocation budgets. it provides an overview of the office fit-out construction costs across 31 key gateway cities in the region, including a comprehensive fit-out cost section covering furniture, mechanical & electrical works, builder works, audio visual/it and other miscellaneous costs.
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about cushman & wakefield
cushman & wakefield (nyse: cwk) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. cushman & wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. across greater china, 22 offices are servicing the local market. the company won four of the top awards in the euromoney survey 2017, 2018 and 2020 in the categories of overall, agency letting/sales, valuation and research in china. in 2019, the firm had revenue of $ 8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. to learn more, visit www.cushmanwakefield.com or follow @cushwake on twitter.
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