In this month’s edition of our Global Mobility News round up, we’ve focused on housing market changes in the APAC region, shipping delays in Singapore, changes to getting a personal number in Sweden, and more!
Housing Market in APAC
In Japan, rental prices for mid-level permanent housing are gradually decreasing, while temporary housing rents remain stable. The weakness of the Japanese Yen has caused a massive influx of tourists and investors, leading to very little housing availability in Tokyo.
Short-term housing rents could rise if demand stays high during the summer months. Some new apartment complexes opening this spring should alleviate some of the pressure. Additionally, the Expo 2025 in Osaka has not received much attention yet.
In China improvements have been made to accept foreign credit cards and mobile payments without a Chinese bank account, facilitating a smoother transition. In the rental market, tenant-paid commission is still common, though in higher-budget categories, some landlord agents may share the commission. This creates uncertainty about when a tenant commission is owed.
Meanwhile, the Singapore rental market is adjusting. Rents have decreased by 5-10% from previous highs, coinciding with an increase in expats leaving Singapore.
In Vietnam, a relatively complex work permit application process can delay assignment start dates and complicate the timing of home finding. Owners typically require tenants to have long-term permission to reside in Vietnam before signing leases. Despite these challenges, strong growth in foreign direct investment (FDI) is expected in 2024, indicating potential increases in assignments as the economy expands. However, the biggest challenges continue to stem from government bureaucracy.
Port Congestion in Singapore: Expected Delays and Additional Costs
Any current or upcoming shipments to or from Singapore, shipping routes involve the Singapore port, can expect significate delays. The congestion, which has been a persistent issue, is expected to continue, potentially throughout the summer.
Some shipments that only transit through Singapore have already reported delays, with transit times increasing from the usual 4-6 weeks to as much as 12 weeks. While delays during the summer months are not uncommon, this year has proven to be exceptionally challenging. It is crucial to plan packing well in advance or arrange for extended temporary accommodation for employees with House Hold Goods shipments. Clients should also be prepared for the additional costs associated with these delays.
Additionally, the global market is experiencing a significant shortage of containers, leading to increased shipping rates across all destinations. For more detailed information on this situation, you can read further here:
- Mounting Container Shortages Creating Total Havoc
- Sudden Container Crunch Sending Ocean Freight Rates Soaring
We anticipate significant rate increases for all shipments in and out of Singapore.
The congestion at Singapore, the world’s second-busiest container port, has reached critical levels, exacerbating the global shortage of ships and containers. Data from Linerlytica shows that containerships may wait up to seven days to berth in Singapore, with recent reports of up to 450,000 TEU of vessels queued.
Globally, port congestion is worsening, with 2 million TEU of ships (nearly 7% of the fleet) tied up, contributing to carrier rate hikes. The bottlenecks at Singapore are primarily due to diversions caused by the Red Sea crisis and shipping lines bypassing the less busy Port Klang in Malaysia. Under normal circumstances, ships can berth upon arrival in Singapore or wait no more than half a day.
Changes at the Tax Authority in Sweden
The Tax Authority in (Skatteverket) has made some changes to the process of civil registration process in Sweden. They will now require appointments to be made at the tax office for applications to apply for the personal number and coordination number. This means that we need to plan ahead as we are bound to their availability, as previously it went fine to just show up and wait in line. This new process has already rolled out in Stockholm and some locations in Malmö. We will wait to see if it affects all Skatteverket locations including those in smaller cities.
Great news for people moving to Canada!
Canada’s Immigration, Refugees and Citizenship Canada (IRCC) has improved its online processing times tool, now providing forward-looking estimates for several application types including Express Entry, Provincial Nominees, and citizenship grants. These estimates, updated monthly, help new applicants predict wait times for final decisions. Historical processing times are still used for other application types. Those who have already applied will see the new times reflecting current expectations for new applicants but should not reapply as it will delay their processing. For more details, read here: Canada Improving Processing Times
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Your Movenet Team
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