Strong labor market conditions have led to a five per cent pay increase within the property sector, according to the latest Avdiev Property Industry Remuneration Report.
Although these wage hikes remain under the inflation rate, they outpaced the 3.6 per cent increase documented in the June 2023 Wage Price Index.
Furthermore, they aligned with the property sector’s pay raises reported by Avdiev six months prior, marking their highest point since 2007.
Adviev Report Principal Debra Moloney said 45 per cent of respondents reported more staff requests than usual for pay increases, 80 per cent of these attributed to cost of living pressures.
“Strong demand for workers continues and market competitive remuneration and attractive benefits are of key importance in retaining, hiring, rewarding, and motivating employees,” she said.
Around one-third of surveyed companies encountered challenges in hiring personnel, especially for critical roles like construction site positions, architects, and funds management. Moreover, candidates with limited experience are increasingly anticipating higher compensation.
While slightly more than half of the surveyed companies (55 per cent) provided the standard full increase, 11 per cent incorporated a catch-up raise, and 26 per cent granted a modest increase. In the upcoming round of pay reviews, 70 per cent intend to grant the standard increase.
Property Professionals’ Remuneration – as at October 2023
Expressed as total annual remuneration – including incentive payments
Market Sector | Position | Total Remuneration National Median March 2023 | Median % Increase for last reviews to September 2023 |
Property Investment, Funds & Trusts Management | Asset Manager >$500m AUM | $258,700 | 4.0 |
Property Development | Development Director | $409,700 | 5.0 |
Retirement Living / Aged Care | Sales Manager | $220,900 | 5.0 |
Retail Management | Senior Leasing Executive | $304,600 | 4.0 |
Real Estate Agency / Advisory | Assistant Facilities Manager | $77,250 | 6.5 |
Design & Building Consultants | Project Manager/Project Consultant | $126,900 | 6.0 |
Building, Design & Construction | Site Supervisor | $175,000 | 4.3 |
Finance, Corporate & IT | Digital Marketing Manager | $145,100 | 5.0 |
Source: The Avdiev Property Industry Remuneration Report March 2023 — 37th edition
Despite recent challenging circumstances, survey participants are observing indications of an easing business environment, marked by improvements in staff recruitment and the likelihood of interest rates nearing their peak.
However, the persistent challenges of high inflation and mounting costs persist, and wage growth remains robust.
There has been a perceptible decline in perceived performance, with 52 per cent of respondents indicating that their company is currently faring ‘well’ or ‘very well’ in the present business landscape, reflecting a significant decrease from the 63 per cent who held this opinion a year ago.
Additionally, 51 per cent of companies are adapting their strategies in response to prevailing business conditions, while 89 per cent anticipate that their company’s performance will either remain the same or improve in the coming year.