Korea Real Estate MLS Find Residential and Commercial Real Estate in South Korea

Korea Real Estate Market Trend

The first repatriations, downsizing, a deer in the headlights?

The first repatriations and staff reduction
Relocation and human resources (HR) professionals are faced with a massive number of issues in the management of global expatriate staff. For many, the pressure increasing their purchasing departments and reduced budgets are left with no choice but to convince some of their expatriate employees to return home soon (or worse, starting forced repatriation) or transient in the early location. Many of the recipients have children settled in schools in their host country and refuse to leave, or are not ready or willing to be reached, making it difficult to maintain staff motivation and morale.

"We are seeing an increase in repatriation As before in Europe and many are the result of his dismissal. These cases can be challenging, "said Shan Norman London. Warwick Anderson of Australia added:" The final result here in Australia is that companies have been frozen in most middle and senior management movement. "

In France, a number of companies are reducing what is causing rising unemployment and consumer confidence. Michel Van Riel of Paris, to share some positive ideas: "Some banks are planning a return to France of their expatriates, mainly from the U.S., and have received positive signals from several customers that the number of expatriates transfer is not affected by the present economic climate. "

Comparing January-February 2009 with the same two months of 2008, the Crown saw a 27% increase in the number of people moving to the United States and Canada, suggesting increasing returns. In New York, Leotti Bob said: "I have seen changes in services and expatriate relocation company to be sent back home or a reduction in the relocation department in itself, especially in the financial sector. "

Las Vegas has been one of the most affected economies in the United States. Lax explains Scott, "In the last 10 years, new construction accounted for approximately 30% of the economy of Las Vegas. Many of these investments have been suspended indefinitely and jobs have also been suspended, or disappeared altogether. With the industry under so much stress, many people are moving away from Las Vegas. "Bill Whaley San Francisco added, "The job losses have been higher than expected with multinationals through significant staff reductions since October past. "

Relocation professionals in the United States as a whole are also unprecedented to address the problems of internal relocation. The mortgage crisis is making it difficult for employees to sell their homes. In fact, some of them are in a negative equity position (when you owe more on their mortgage than their home is worth.) For employees who can not sell their homes, corporate clients are implementing creative solutions in their efforts to relocate employees needed to fill an important role throughout the country. Home sales strategies, temporary housing benefits and special monetary awards are just some of the strategies being used by professional relocation program management national mobility in the United States.

The economic impact in Southeast Asia
As Andrew Little "in Singapore, the layoffs of 3180 nearly tripled in the third quarter last year to a record quarter of 9410 workers in the fourth quarter as the global economic slowdown worsened. As a result, Singapore has introduced a series of recovery plans in efforts to boost the economy. "

"So far I have not seen a major impact in Malaysia, but of course there are people back home. Some of the business projects have been suspended, but continue existing projects. Malaysia has become an attractive location for many companies looking to establish its regional headquarters in Asia which has softened the impact of global economic conditions. "Ronan Kelly said in Kuala Lumpur.

The Philippines has not experienced a definite increase in movement output, but is starting to see a way out of the middle managers. Camilla According to Brooks, "the industries most affected are the construction and banking. Despite the significant growth of Business Process Outsourcing (BPO) in the Philippines in recent years, there are signs of a slowdown in growth. Although it is not clear, this slowdown is likely in the short term as companies continue to be attracted by the opportunities for cost savings from BPO.

Seoul Hulme Leon gave his thoughts on the economic impact on Korea. "The Korean Won (KRW) are one of the worst performing currencies in Asia, the largest amount of a concern in Korea, as the global financial crisis is. "Many Koreans and Korean Americans are coming home to provide financial support to their families are impacted by the local currency is weak and unable to earn a living. "

Some countries remain strong BRIC
Regina Sao Paulo Mattos believes that Brazilian companies are thriving relocation of the present global economic crisis. "Brazilian banks have been very strict about making loans to prevent a housing boom and the corresponding bubble, as seen in the United States. People moving to Brazil are still increasing, abundant natural resources and foreign investment continued to flow. "

Moscow has not done so well. Russia has been experiencing an almost 40% collapse of the ruble currency in the last year, which has accelerated the already high inflation rate. Corona has seen an increase of expatriates leave Moscow for recent months compared to the same period last year and is a global slowdown expatriates making their new home in Moscow. While the expectation is that this slowdown will continue in the short term, growth in the eastern region of Europe in recent years, along with the country's natural resources to create a sense of optimism regarding the country and the region's long-term growth.

In India, the Crown saw a 31% increase in movements output with a downward trend mainly in banking and construction. Many of the 1,000 expatriates in Bangalore are asked to leave. Hotels offering long term accommodation for foreign expatriates who are seeing more and more out of town. But there has been stability and some growth in the hospitality, pharmaceutical and telecommunications industries. Crown team in India is highly developed BPO optimistic about India and banking. Many have adapted a "wait and see" approach to the global economic situation.

China is already an interesting trend in the expatriates who have lost their jobs, and instead of returning to their country of origin, are opting to stay in China and find another employer. Gary French of Hong Kong, said: "Over recent months we have seen an increase in the number of movements out, but we have also seen a significant increase in the number of people choosing to pack and move to low-cost housing or other Asian cities, while maintaining their personal effects in the short-term storage.

"We think this is a result of people who want to stay in the region to let their children finish the school year and also because they see future opportunities in the region and enjoy life in Asia. "

Despite this trend, the Crown has seen double-digit increases in the number of shipments out of Hong Kong against the first two months of last year. Many departments human resources are putting a stop motion (both domestic and international) until the market stabilizes or are looking to hire qualified closer "Local" instead of hiring expatriates abroad.

No country is immune
The explosive growth and labor market competitive Dubai is relaxing and real estate values are declining, following the unprecedented rise in recent years. In Dubai, rental prices are expected to decline by up to 30%, down from an estimated increase of 15% in 2008, according to an Egyptian-owned investment bank. For the UAE capital Abu Dhabi, however, a 10-15% increase in rents is expected this year due to housing shortages.

South Africa has not been so severely beaten by the global economic crisis due to the implementation of a National Credit Act two years ago. The National Credit Act dramatically affected companies South Africa in 2007, but made banks almost immune to the ills of the banking sector. mining sector of Australia employed many South Africans in 2008, but due to reductions taking place in Australia, many South Africans are now unemployed and want to go home.

A deer in the headlights?
Some companies are watching and waiting before taking final actions. Leon Hulme, from Seoul, said, "some customers are seeing the adoption of a 'deer-like the headlights of behavior, apparently not sure what to do now, so sit back and weather the crisis a little more.

"This could change in the coming months as most expatriate contracts will end later this year, coinciding with the school term. It is less of a burden administrative and helps maintain the morale of the employees to leave their contracts come to its natural end. "

About the Author

Christine Draeger is Group Vice President of Crown Worldwide. The Crown Relocations divisions help corporates, employees, private individuals and their families move and settle in to new locations around the world.

The Army at War – Transformation