b"GLOBAL HOUSING 44 per cent reported a significant orMany worked with partners during andrisen, in places dramatically, Michnay very significant impact, while 62 per centpost-pandemic to negotiate the best situa- says. There have also been changes to the reported this level of impact on assign- tions possible for both parties. Providersprocess, such as in Singapore where, pre-ments. They're turning over every rockchoose their partners carefully, vetting thempandemic, the realtor fee was paid by the that they possibly can in order to find suit- to ensure clients they place with partnerslandlord; now it is necessary for the tenant able accommodations, says Cryne. Youare dependable and professional. to pay the tenant-side commission tomay be able to find accommodations, butthe realtor.are they at the level that people were On this topic, Chicago-based Sharon used to? Michnay, president of Relo Network Asia,Steve Burson is the CEO of Relo Network adds: I don't know of any company that isAsia. Based in Singapore himself, he The two most common solutions thatnot happy to take on or resume a relation- says that the housing situation there is survey respondents reported putting inship with a client. Business is business, so acute that some prospective tenants place to address the issue were allowingbut be aware that contracts and pricing must bid above the offered price to get a alternative temporary housing options likeare not the same today as they were in property. When there are 10 people lined Airbnb for permanent relocations (63 perthe contracts of pre-pandemic and up for a property, if its listed at $5,000 cent) and assignments (50 per cent), andpre-inflation [times]. and someone else is offering $5,500, the providing longer temporary living benefits[landlord] is obviously more interested, he for permanent relocations (75 per cent)Michnay is especially aware of the situationsays, adding that property owners in Asian and assignments (50 per cent). across Asia, which ranges from normal tocountries may not be prevented from alarming. At worst, she says, I've seendiscriminating against potential tenants on The most important thing for mobilitycompanies rent out cruise ships to use forsuch grounds as race or having children.managers is to clarify expectations withhousing when none was available.the employee, and where appropriate withThe cumulative pressure has an impact their families and also the operationalRelo Network Asias Asia Situation Updatenot only on transferees, but also on the people, Cryne says. The nature of2022 (Q3) gives a snapshot of the housingstaff who are assisting them. Our people relocations has changed, so people needsituation across Asia. It sorts countries intoare on the receiving end of a lot more to plan accordingly. Dont wait until twothree groups, beginning with countries thatstress to answer to these problems, which weeks before; you should be planning twohave already opened borders or are aboutthey did not make. So its been really chal-to three months out. to do so. Of these, Japan and Singaporelenging for them, and I dont think that are experiencing unprecedented demand,they probably get the recognition that they Mary Ann B. Passi, CAE, is the CEO ofinventory shortage and high costs thatdeserve, Burson says. Not just our staff, the Corporate Housing Providers Asso- continue rising. Korea, Malaysia and ciation (CHPA), based in Indianapolis,Taiwan are seeing high demand, decreasingbut real-estate agents as well.Indiana. She too is well versed in theinventory and rising costs, while VietnamsIn the end, the causes for the current situa-challenges. Forecasting for demand hassupply and demand are currently stable. tion are many and varied, says Michnay. become very difficult. Demand exceedsThe good news is that after the rush, expectations, and then supply expectedThe second group includes countries that to come back on the market is less thanare in earlier stages of reopening, includingthings are appearing to stabilize. The bad anticipated, she says, noting that inBrunei, Cambodia, Hong Kong, Indonesia,news is that they do so in the near term Canada, rising interest rates are stalling thePhilippines and Thailand. Here, increasingas higher prices and reduced availability, housing market, while corporate housingdemand is just beginning to drive pricesshe notes.providers are holding on to inventoryupwards. The third group of countries CERCs Cryne has a positive outlook. I longer, and the insurance housing industryChina, Macau and Myanmarhas keptthink its going to stabilize over the longer is using corporate housing more than ever. borders closed or highly restricted. Theyterm, he says. The question is whether have not yet seen a tighter housing supplythe demand will be there for relocating Relocation professionals are consideringor attendant price hikes.short-term, Airbnb-type accommodation asemployees, and I think it will be. Global a more viable option than in the past, butOverall, the rates for temporary accommo- mobility drives global trade, and thats it is far from ideal. Member companiesdations and long-term accommodation havegoing to come back.are losing some business to other leisure-focused, alternative accommodations, Passi says. These short-term, transient options, however, do not provide a viable alternative in the corporate travel world. There is lack of consistency among indi-vidual owners, and the experience is not controllable. When a company is respon-sible for the welfare of its employees, the uncontrollable is not an option.But during the first months of the pandemic, when the world shut down, it was no longer possible for companies to continue in longstanding arrange-ments with their usual traditional housing providers. Passi points out that CHPA members worked hard to maintain rela-tionships they had spent years building. Winter 2022PERSPECTIVES25"