Pay rises in the property industry have not yet taken a hit from the coronavirus pandemic, but future remuneration increases are likely to be “modest” as the “year of the virus” unfolds, according to Avdiev’s latest remuneration report.
The March 2020 edition of the property industry remuneration report reflected an industry working hard to deal with tough economic and global conditions.
Companies are focused on diversification, target markets and their customers as avenues for growth during this time, with investment and development groups focused on acquisition and development of assets.
For construction companies, innovation is occurring in materials, systems and processes. Funds management and investment groups are honing in on digitisation and the shared economy.
The report also found that most companies had undershot the timeline of the virus’ impact, and would need to review their coping strategies.
Dubbing 2020 the “year of the virus”, Avdiev Group managing director Rita Avdiev said the whole world is in “unchartered territory”.
“All strategies developed in the last six months will need to be modified now to deal with the challenging conditions,” Ms Avdiev said, “but property people are resilient and used to rapid and drastic changes in conditions.”
Surveyed participants reported a competitive environment for winning work, and difficulties managing cashflow. Young workers, however, are benefiting from the added competition.
“Increased competition for top talent makes acquisition difficult and defence even harder – the young are sought after and well rewarded.”
Junior staff are also seeing healthy pay rises in sectors with fast transaction activity and tight project deadlines.
“This may be an opportunity for the seniors to step up and help the youngest team members through a steep learning curve and some nail-biting moments along the way,” Ms Avdiev said. “This is only the beginning, the excitement of change is ahead.”
Overall, because property prices have been doing well, especially residential, remuneration has followed.
The median pay rises were 2.5 per cent overall (the same as this time last year, surprisingly), with spikes in sectors where shortages of competent people exist. It still remains hard to find good people to fill capital transaction and project delivery related roles, the report stated.
But going forward, the outlook is mixed. Future increases for remuneration remain modest, the report forested, but will “fluctuate with business conditions”.
The economic stimulus package announced by the federal government will likely help the property industry stay on its feet.