According to the latest "Asia Pacific Office Fit-Out Cost Guide 2026" released by Jones Lang LaSalle (JLL), the fit-out cost for standard specification corporate offices in Hong Kong has increased by 1.5% year-on-year to USD 200 per square foot, equivalent to approximately HKD 1,566 per square foot. This rise is attributed to tariffs pushing up the prices of metal construction materials. The report indicates that office fit-out costs are continuing to climb in multiple cities across the Asia Pacific region, primarily due to tight labor supply, persistently high material prices, and the increasing complexity of mechanical, electrical, and technology systems. Martin Wong, Head of Project Development Services at JLL Hong Kong, stated, "Tariffs have increased the prices of steel and copper, leading to higher costs for core mechanical and electrical works, security, IT, and audiovisual systems. However, amid a slowdown in market transactions, contractors are lowering their bid prices to secure projects. Fierce market competition has offset some of the impact of rising material costs on overall fit-out expenses, resulting in only a 1.5% year-on-year increase in office renovation costs." Looking ahead, Wong expects office fit-out costs to remain under upward pressure through 2026. He noted that ongoing geopolitical uncertainties are exacerbating volatility in metal markets. Technology hardware, such as video conferencing systems, has also seen significant price increases this year. Furthermore, as Hong Kong's office leasing market becomes more active, demand for office design and fit-out has rebounded, reducing the need for contractors to rely on low bids to win projects. JLL stated that geopolitical uncertainty has once again become a significant factor influencing cost risks. The ongoing conflict in the Middle East and associated supply disruption risks are causing renewed turbulence in global energy markets, particularly impacting Asia Pacific markets that are highly reliant on imported energy, petrochemical products, and energy-intensive construction materials. Martin Hinge, Executive Managing Director of Project Development for Asia Pacific at JLL, commented, "Compared to other regions, fit-out cost disparities across Asia Pacific markets remain substantial. High costs in markets like Japan, Singapore, Australia, and New Zealand reflect local labor shortages and stringent fit-out standards. Markets like India, Mainland China, and parts of Southeast Asia still show cost advantages when measured in US dollars, but this is often due to currency fluctuations rather than an actual decrease in material costs."