Property industry remuneration rises eased to 4.0 per cent from 4.7 per cent, while higher than the national Wage Price Index of 3.2 per cent, according to Avdiev Report’s latest Property Industry Remuneration Report 2025
“Property businesses continue to face a delicate balancing act in attracting and retaining key talent while balancing the budget, as remuneration growth, while moderating, continues to outpace the wider population,” said Debra Moloney, Principal of remuneration consultants Avdiev Report.
Key findings include:
- Property industry remuneration rises eased to 4.0 per cent from 4.7 per cent, while higher than the national Wage Price Index of 3.2 per cent.
- Similar remuneration increases are forecast for the year ahead, outpacing forecast inflation.
- Requests for out of cycle pay increases continue, due to cost of living pressures, but are decreasing.
- Skills shortages persist for one in four property businesses.
- 92 per cent anticipate improved or similar operating conditions in the year ahead.
- Industry working towards closing gender pay gap, with 53 per cent monitoring the disparity.
- 59 per cent find success in non-remuneration strategies to attract and retain talent.
- Just 8 per cent of property businesses anticipate worsening conditions in the year ahead.
Despite easing inflation and a February interest rate cut driving optimism for the property industry, one in four businesses (28 per cent) are still facing skills shortages, according to Avdiev Report’s latest survey.
“Most businesses feel there has been little improvement since a year ago, with 69 per cent suggesting skills shortages are much the same as in February 2024, while 26 per cent reported a noticeable improvement.
That helped to drive remuneration up by 4 per cent over the year – down from 4.7 per cent 12 months ago, but still well above the national WPI figure of 3.2 per cent. Median increases varied across sectors and staff levels between 3.5 per cent and 6.0 per cent,” Moloney said.
Meanwhile, over half of businesses said their non-remuneration strategies, including staff development, mentoring and flexible work arrangements, have proved successful (46 per cent) or very successful (13 per cent). Just 8 per cent said their strategies had failed to live up to their expectations.
Another bright spot from the national survey was that the industry is making substantial efforts to close the gender pay gap. Some 60 per cent of property companies have implemented measures to address gender pay gaps, up from 50 per cent reported in our survey in 2017. 24 per cent reported an improvement at bridging this gap over the previous 12 months. None recorded progress going backwards.
“This is a pleasing finding, particularly coming on the back of International Women’s Day. The property industry has shown substantial progress in working towards improving the gender pay gap and reporting requirements are having a positive impact on change,” said Moloney.
Looking ahead, employers expect overall remuneration to continue increasing at around 4 per cent, again with considerable variation across sectors and staff levels. Pay freezes or reductions were nowhere to be seen.
Nevertheless, just eight per cent of businesses across the industry see a worsening in business performance over the
year ahead. The vast majority expect to see similar (46 per cent) or better (46 per cent) business growth throughout 2025.
Moloney concluded: “The outcome of the federal election and whether any further interest rate cuts materialise are just two of many uncertainties facing employers in the year ahead.
And with further pay increases of four per cent forecast against inflation of 2.4 per cent, employers need to be diligent in balancing their remuneration costs against the skills and experience needed to capitalise on future growth opportunities.”
