Sydney beats Tokyo to become the priciest Asian city for office fitouts
According to the Financial Review, Sydney has now overtaken Tokyo to become the most expensive city in Asia to fit out an office. A combination of skilled worker shortages, material price increases and supply chain disruption are driving inflation in the construction industry that has struggled to attract sufficient people even before the pandemic.
The effects of the tight labour market are being felt across Australia as project volumes surge beyond pre-pandemic levels, commented JLL’s managing director for project and development services, Andrew McCrossin.
“Across the country, strong client sentiment has driven an increase in project volume over the last 12 months which, in conjunction with regional and global headwinds, have led to significant inflationary pressure on construction and office fitout costs.”
The demand for fitouts is booming, as building owners reposition their assets to attract tenants, or work with occupiers to boost the attraction of a communal workplace and entice staff back to the office. However, the market is expected to moderate over the next 12 months with talks of a recession in Australia.
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