Property sector wage rises moderated to 4.7 per cent yet continue to outpace the general workforce of 4.2 per cent, according to Avdiev Report’s latest Property Industry Remuneration Report 2024.
However, this marked a modest decline in the pace of wage growth within the industry, which sat at five per cent in the March 2023 survey.
Stabilising pay rises comes on the back of easing labour shortages. While a still significant 25 per cent of property companies admitted to difficulties recruiting to fill key vacancies, this figure has continued to fall since peaking at 60 per cent in March 2022.
“Property industry employers have cause for hope that the worst may be behind them, as the significant labour shortages and pay pressures of recent years appear to be stabilising at last,” said Debra Moloney, Principal of remuneration consultants Avdiev Report.
“It is encouraging that most companies believe adverse trading conditions are now bottoming out and some optimism is beginning to appear. Stabilising remuneration and skills shortages, coupled with expectations that interest rates may start falling by year’s end, will create more favourable operating conditions for most property sectors in 2024 and beyond.”
Almost half (44 per cent) of companies said they struggle to keep up with staff demands for pay rises.
Nearly all (94 per cent) of property companies are planning pay increases in 2024. Minimal pay rises are expected for 30 per cent of businesses in 2024, while 15 per cent expect higher increases to catch up to the market level.
The majority (55 per cent) of those companies surveyed said they are performing “moderately” – neither well nor badly. Only 25 per cent said they are performing “well” and just 15 per cent are performing “very well”.
This marks a dramatic drop in performance compared to the previous six months, when 47 per cent of companies said they were performing “well”. Most (53 per cent) expect little to no change in operating conditions for the remainder of the year.