- Contractor Sentiment Survey shows 70% of respondents expect improved market conditions in 2026
- Office fit out costs diverge across the region with Japan and Taipei posting largest year-on-year increases
Seoul, 25 March, 2026 – Cushman & Wakefield’s Asia Pacific Office Fit Out Cost Guide 2026 highlights a clear shift in regional market dynamics, with sentiment strengthening and activity levels improving across several key markets. Contractor confidence has risen year-on-year, with 70% of the respondents to the firm’s annual Contractor Sentiment Survey anticipating improved conditions in 2026. This positive sentiment is further supported by the stronger‑than‑expected 92 million square feet of office absorption in 2025 and a tightening construction pipeline outside India.
Of the 180 survey respondents, nearly two thirds reported project backlogs of around six months, reflecting improving project delivery conditions across the region. While Japan and Indonesia remain outliers with longer backlogs, most markets expect stabilisation or slight improvement in delivery timelines in 2026. This alignment between contractor sentiment and strengthening occupier demand points to a more balanced and active project environment emerging across Asia Pacific.
Tom Gibson, President - Project & Development Services and Sustainability, APAC & EMEA said:
“Across Asia Pacific, fit out and project delivery conditions are improving, with contractors reporting more balanced workloads, strengthening pipelines and better visibility over labour and materials availability. As construction pipelines tighten in several major cities, competition for high quality space will intensify, making early planning and disciplined project execution even more critical. These shifts are prompting organisations to restart workplace upgrades and portfolio transformation efforts. Looking ahead, we expect growing demand for high quality, experience-led fit outs as occupiers prioritise more efficient, future ready workplaces across the region.”
Fit Out Cost Movements (YoY, 2025 → 2026)
The 2026 Guide reported a divergence in city level fit out costs (measured in USD per sq ft) across the region:
- Costs rising: Japan and Taipei posted the largest year-on-year increases (Tokyo: USD 215 vs USD 195; Taipei: USD 145 vs USD 110)
- Costs easing: Mainland China and South Korea saw declines (Shenzhen: USD 87 vs USD 94; Seoul: USD 130 vs USD 156)
- Costs steady: Singapore (USD 140) and Hong Kong (USD 160) remained largely unchanged
- Costs steady: Singapore (USD 140) and Hong Kong (USD 160) remained largely unchanged
These cost movements reflect evolving local construction dynamics and broader economic adjustments influencing material, labour and delivery markets across Asia Pacific.
APAC Office Market Dynamics
Even as office demand across APAC surged in 2025, Cushman & Wakefield also noted a substantial contraction in new office supply outside India. Development pipelines have moderated sharply due to rising construction costs and reduced project feasibility, intensifying competition for prime space. As supply tightens, vacancy rates in high quality buildings - particularly in core CBD locations - are expected to trend lower, reinforcing the ongoing flight to quality amongst occupiers.
Report author and Head of International Research, APAC & EMEA, Dr Dominic Brown said:
“After a resilient 2025, the Asia Pacific office market is now transitioning into a more stable phase, supported by a gradual return of business confidence. Coupled with the tightening supply pipeline outside India, which is reshaping the competitive landscape for high quality space, these collective shifts indicate a meaningful turning point for the region in 2026, with both occupiers and investors positioned for renewed momentum.”
Jaehong Lee, Head of PDS, Cushman & Wakefield Korea said:
"Despite a recent stabilizing trend in South Korea’s overall fit-out costs, we are seeing a continued surge in corporate investment toward high-end workplaces that integrate sophisticated IT security and enhanced employee experiences. While Seoul remains the primary hub for next-generation offices driven by talent acquisition, Busan is emerging as a compelling, cost-efficient alternative with robust infrastructure especially for certain industries. As labor costs and supply chain variables are projected to rise, it is critical for occupiers to leverage data-driven strategic planning to optimize their capital expenditure and create future-ready work environments."
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