What is the Current Cost of Setting Up an Office in APAC?

Costs in APAC grew 4.5 per cent, with the biggest increases seen in Australia, Singapore, Malaysia, and South Asia.

FREMONT, CA: Over the past year, the average cost of furnishing offices has increased by 4.5 per cent in the Asia Pacific. The markets in Australia, Singapore, Malaysia, and South Asia experienced the largest price hikes. Sydney has surpassed Tokyo as the most expensive market in Asia Pacific for office fit-outs for the first time in five years. Tokyo had previously held the top spot.

The analysis claims that factors, including growing fuel and raw material prices, which will impact construction pricing in 2022, are to blame for price hikes in most markets. Production rates, timeliness, and material costs have all been impacted by broken supply chains and rigorous zero-COVID regulations in Mainland China. At the same time, continued geopolitical concerns have hampered development, aggravating energy and supply chain restrictions and igniting the second wave of price hikes.

While most markets have returned to normal, many still have difficulties that can be linked to the pandemic. Over the upcoming 12 months, they anticipate that these variables will still drive up construction price inflation.

There is an increased risk of consolidation and a decline in competition due to the ongoing rise in interest rates worldwide and the financial fragility of contractors and subcontractors in many markets. Meanwhile, access to trained and semi-skilled labour remains crucial as talent competition heats up.