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Hong Kong fit-out costs expected to fall to pre-pandemic levels when China border reopens, Cushman says

  • Hong Kong is the world’s fifth most costly city for office development, according to a report published by Cushman and Wakefield on Tuesday
  • ‘When the borders are reopened … additional costs will fall’: Cushman executive

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Central in Hong Kong. Fit-out costs in the city have surpassed those in Shenzhen, Beijing, Guangzhou and Shanghai by up to 20 per cent, Cushman says. Photo: Felix Wong
Cyril Ip
The average cost of developing offices in Hong Kong will return to pre-pandemic levels when borders with mainland China are reopened, allowing for the smooth transport of building materials, industry experts said.
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Hong Kong is the world’s fifth most costly city for office development, with three Japanese hubs – Tokyo, Osaka and Nagoya – taking the top spots, according to a report published by Cushman and Wakefield on Tuesday.

Fit-out costs in Hong Kong, or the cost of developing interior spaces into offices, have surpassed those in Shenzhen, Beijing, Guangzhou and Shanghai by up to 20 per cent, it said. At US$138 per sq ft, the financial centre was four positions up from last year, and was marginally outstripped by Auckland’s US$139 per sq ft.

The consultancy’s evaluation considers the cost of furniture, IT equipment, security devices, as well as mechanical and electrical systems, which are usually paid for by the tenant.

Projects in Hong Kong have endured higher costs during the Covid-19 pandemic, because of disruptions with deliveries of building materials from the mainland, according to Bryant Cheung, senior director at Cushman.

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