Foreign Property News | Posted by Si Thu Aung
A new study published by property consultancy Cushman & Wakefield revealed office fit-outs in Hong Kong cost significantly less compared to major Japanese and Australian cities, despite being home to the highest rental rates in the past four years, reported Yahoo! News.
Among the 28 gateway cities in Asia Pacific, Hong Kong office fit-outs rank seventh at USD130 per square foot (USD1,413 per square metre), which is about 35.6 percent less than USD202 in Tokyo and 16 percent lower than USD154 in Sydney.
The ranking also revealed Taipei as the most economical, at USD70 per square foot.
“Cheaper labour cost, furniture, fixtures and equipment, and construction materials are the main drivers for lower office fit-out costs in Hong Kong,” explained managing director of project & development services Tom Gibson.
Hong Kong has maintained its record of being the most expensive city for office rentals in the world for four straight years, according to real estate services group CBRE. Shortage in supply and the growing demands from mainland Chinese companies and banks have led to the price increase in recent years.
The study by Cushman & Wakefield aims to help tenants properly designate their relocation budgets and capital planning, such as knowing the itemised costs of electrical and mechanical works, audiovisual/information technology, builder works, and furniture, as well as the reinstatement cost in the region.
Ref: Propertyreport
