Home Property Australia Property pay surge to continue in 2023

Property pay surge to continue in 2023

  • March 22, 2023
  • by Property Australia
Debra Moloney, Principal and Lead Consultant, Avdiev Report

Inflation and economic uncertainty were not the only things rising in 2022, it turns out so was your hip pocket.

That’s according to a new Avdiev survey which revealed pay growth in the property industry rose by an average of five per cent overall in 2022, outpacing the 3.6 per cent wage rise in the broader economy, and the highest annual growth since 2007.

The Building and Construction industry had the largest average pay rises in 2022, with 5.8 per cent for seniors and 6.8 per cent for mid-level personnel. In 2023, the Design and Building Consultants sector is expected to experience the biggest gain, with mid-level and junior staff pay rising by seven per cent, according to the survey. 

Debra Moloney, Principal of remuneration consultants Avdiev Report (pictured above), said companies will be challenged to fill vacancies and ward off head-hunters while keeping pay expenses contained over the next year.

“Many property industry businesses face the real challenge that increasing costs and rising salaries could outstrip their profit in already-quoted projects; they must also be competitive in quoting for future work – so there’s pressure to control overheads, including salaries,” she said.

Going ahead, staffing remains the most challenging concern for the property sector, with 35 per cent of firms naming it as their top priority for the next 12 months. Respondents cited issues ranging from pay increases and talent retention to trouble locating and keeping appropriate workforce.

Thirty per cent of companies expect to increase pay by six per cent and over in 2023 with 18 per cent of those expecting increases of 10 per cent and above.

According to the annual Avdiev Property Industry Remuneration Report, the current economic environment has hit property companies hard, with 29 per cent reporting that 2022 was worse for business than 2021 – and 14 per cent expecting the decline to continue in 2023.

Only 16 per cent of property firms questioned were doing ‘extremely well’, while 39 per cent claimed they were doing ‘good’.