Hong Kong office fit-out costs rise 1.5% on metal price spike

Contractors no longer cut bids as office leasing demand rebounds. 

Hong Kong’s office fit-out costs grew 1.5% annually on the back of rising metal material costs, according to a JLL report. 

Data from the group revealed that the fit-out cost for a medium-quality corporate office in the city rose to $1,566 (US$200) per square foot.

Ryan Wong, head of Project and Development Services at JLL in Hong Kong, said tariffs have pushed up steel and copper prices, raising the cost of core mechanical and electrical works, as well as security, IT, and audiovisual systems.

However, contractors have lowered their bids to secure projects amid a slowdown in market activity.

“The intensified market competition has partially offset the impact of rising material costs on fit-out cost,” Wong added.

Office fit-out costs are expected to remain under upward pressure through the year as geopolitical uncertainty continues to create volatility in metals markets.

Prices for technology components, including video conferencing systems, have also risen significantly this year, Wong said.

“In addition, as Hong Kong’s office leasing market turned active, demand for office design and fit-out has rebounded. Contractors no longer need to lower their bids to secure projects,” he added.