Housing is a key component of any domestic or international housing package, so of course, cost is a major factor here. With prices rising despite a surge in supply, the state of the housing market in Australia is fast becoming a cause of concern for many workforce management professionals.
According to CoreLogic, Australian house prices increased +22.1% in 2021, led by Australia’s largest city of Sydney (+25.3%).
Despite ‘the experts’ predicting interest rates will rise, the expectation is for prices to continue to increase regardless, as we continue upward along the property cycle trajectory.
So, what does this mean for mobility practitioners?
With people struggling to rent or buy within desirable timeframes and rental prices soaring, mobility professionals have started to review their mobility policies, extending the contracts with corporate housing vendors and the time individuals are supported in temporary accommodation. In some cases organisations are looking to purchase residential housing which can be utilised for long and short term housing needs. Rental budgets are also being reviewed as the housing crisis accelerates in regional locations around the country.
The premium level of service traditional corporate housing suppliers offer has become more attractive, since prices have become more affordable when compared against rentals, and with serviced apartments providing more flexible options, such as pet-friendly stays, assignees can enjoy all the creature comforts of home in a serviced apartment too.
Proximity to the assignment, the lifestyle opportunities a location provides, the range of amenities available and the level of service throughout the stay (for both the guest and the corporate client) will always factor into housing choices. With the impending ‘housing crisis’ on the cards, we are likely to see increased use of rental advocates to assist in securing quality housing long-term.
And will the state of the housing market impact organisations’ ability to attract and/or retain key talent?
Undoubtedly. Assignees may be resistant to relocating if they fear they will lose the property they currently own or rent and be unable to find something similar at the end of the project.
While we are yet to see the full impact of the state of the housing market in Australia, it is clear that strategic work will need to be done to ensure relationships with corporate housing suppliers and rental advocates are in place and supply is available, now that borders are reopening and the talent pool is expanding once more.
Visit our ‘Friends of TEMI’ web page for a list of trusted organisations to help you with your housing and relocation needs and join us on LinkedIn to contribute your thoughts on this discussion.
