ICYMI: per diem rates, mortgages...and bed bugs!

Every two weeks we summarize recent global events and changes that might have an impact on your global mobility program and relocating employees. This time, we have some really interesting updates!

First, the GSA updated per diem rates for U.S. federal employees. Lodging per diem rates are going up for the second straight year, from $98 to $107 per night. However, meals and incidentals are remaining the same ($59-$79) as last year, despite Consumer Price Index data showing that the cost of food has risen about 5% over the past 12 months. For mobility programs with policies that utilize per diem rates, this is a good trigger for reviewing your own rates to see if they need to be updated to match current costs.

1. United States: Per the Morning Brew, housing demand and mortgage applications dropped to the lowest level since 1996 last week, according to the Mortgage Bankers Association. Current owners don’t want to sell and lose their lower mortgage rate. So there isn’t much inventory even for those looking to buy, and the rapid rise in rates has pushed an increasing number of potential homebuyers out of the market. The average interest rates for both 15-year fixed and 30-year fixed mortgage rates have also increased. The average 30-year fixed-rate mortgage reached 7.8%. 
   
   On the immigration side, Newland Chase reports that US Citizenship and Immigration Services (USCIS) has proposed a significant increase in immigration filing fees, affecting various forms and applications, which, in turn, will impact both individuals and companies. Lastly, according to a recent AIRINC Data Points update, US rental markets have settled down since the high-paced inflation last year but most are up at least a modest amount. Many would be buyers are remaining stuck as renters due to low inventory.
    
2. Israel: The government has issued automatic extensions of work visas and travel updates per Fragomen. In light of the ongoing security situation in Israel, the Population and Immigration Authority has indicated that it will automatically extend the validity of work visas that are expiring for the next month with a new expiration date of November 9, 2023. Air travel to and from Israel remains possible but many airlines have temporarily cancelled services. EIG notes that as of October 9, 2023, Israeli citizens abroad who wish to return to Israel should complete this online form. For ongoing updates, also look at this blog from Newland Chase. In Canada and the U.S. (per Crisis24), the Israeli-Palestinian conflict may prompt protests in major cities through mid-October. Tightened security is likely if this occurs.
    
3. China: China’s Ministry of Foreign Affairs recently announced two changes designed to simplify the visa application process by reducing the amount of information collected in the visa application process. The goal of this change is to increase the number of foreign visitors, according to Newland Chase. Also, per AIRINC's recent Data Points update, the Chinese Ministry of Finance and State Administration of Taxation extended for another four years the preferential income tax treatment on expatriate fringe benefits, through 2027. Crisis24 is additionally reporting that the city of Beijing will deploy increased security and temporarily close roads for the upcoming Belt and Road Initiative Forum on Oct. 17-18.
    
4. Singapore: Also from AIRINC's recent Data Points update, the rental market in Singapore has started to cool off and there has been a decrease in expat arrivals for the 3rd straight quarter. With new units coming onto the market, the rental market is expected to continue to have low inflation in the coming quarters. That is likely good news for many global mobility programs as we recently shared that Singapore had climbed from the 13th to the 5th most expensive city for expats.
    
5. Australia: Yet again from AIRINC's Data Points update, Australia is having a similar issue as the U.S. when it comes to low inventory for homes. Rising interest rates continue to push people into rentals and price out potential homebuyers. Rents have also increased in Brisbane, Perth and Sydney since Q1 2023. Per The Guardian, data from Corelogic's Rental Value index shows annual rent increases in all major cities topped 10% last year as advocates warn low-income earners are being priced out of the market. This is the fastest rent increase in at least 15 years.
    
6. Malaysia: for those with expatriates in Malaysia, the MDEC announced the 2024 quota projections for expatriates will be open from 1 November 2023. Employers registered with MDEC will be able to submit their 2024 quota projections from that date forward. It is recommended that employers submit their quota projections for 2024 as early as possible to avoid any delays in the application processing.
    
7. France: As Paris prepares for next year's Olympic games, the city is dealing with an epidemic of bed bugs. Reports have broken on the increased sightings of the insects in homes, cinemas, trains and even hospitals. Now, questions are being asked about the safety of traveling to and from Paris, and maybe across Europe. Read this from Conde Nast Traveler.