Backlogs are mostly under control
Views on labour and raw material cost increases divided opinions • Labour costs were seen as the primary driver of price increases in Australia, Indonesia and— to a lesser extent—Vietnam. In these locations, Project execution times also expected to increase modestly • Only Vietnam and the Chinese mainland have noticeably lower execution and lead times than the regional average.
The worst of pricing pressure is now over
70%
90%
• Price increases remain muted in Greater China, and more pronounced in Australia and India. • Nearly 70% expect only a slight increase in pricing over the next six months • A further 20% expect prices to remain flat
• Almost 90% of respondents reported backlogs of six months or less. • In Indonesia, one-third of respondents reported seven to eight month backlogs. • In Japan, nearly 25% reported backlogs in excess of ten months, mainly attributed to the shrinking construction workforce and limitations on overtime.
while the tight labour market has eased somewhat, pressures remain in 2026.
• In contrast, weaker labour dynamics on the Chinese mainland and lower wage pressure in South Korea and Japan saw respondents attribute cost increases more to raw materials.
Contractor Sentiment
At a regional level, contractors are positive on the sector’s outlook, with an overwhelming 70% expecting conditions to improve slightly or significantly. Australia and India are standouts here at over 90%, with most of Southeast Asia above the regional average. Together these factors should give companies greater assuredness in underlying project costs and timelines, suggesting now is an opportune time to undertake key capital expenditure projects before activity begins to accelerate.
Project lead times likely to remain benign
Respondents were roughly evenly split on the impacts of tariffs
Results from Cushman & Wakefield’s Asia Pacific Contractor Sentiment Survey, which obtained the views of over 180 general contractors from around the region in December 2025 and January 2026, confirm that the sector is healthy and the outlook is positive for the year ahead.
51%
33%
• Approximately one-third expect an increase in project lead times; the remainder are neutral or expect a slight decrease. • Japan is an outlier: 85% of respondents there expect a slight increase. • India, Indonesia and Malaysia also sit slightly higher than average.
• Regionally, 41% expected no impact on vendor pricing, while 51% expected a slight increase • Respondents in India expect a higher risk of significantly increased pricing; overall there was little intraregional variation • The cause of these potential increases remains unclear, as most Asia Pacific economies have not enacted reciprocal tariffs on imported goods, but could reflect contingency planning in response to heightened geopolitical volatility and broader disruptions to global shipping and supply chains.
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Cushman & Wakefield
APAC Office Fit Out Cost Guide 2026
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