Property Industry: Challenges and Resilience
In the ever-evolving landscape of the Australian property industry, the latest survey from the Avdiev Property Industry Remuneration Report reveals both resilience and challenges.
The industry has faced tough times, with economic conditions remaining a significant concern, particularly the impact of high inflation and rising costs. However, there are signs of optimism, with improvements in staff recruitment and signs of interest rates peaking.
The insights from Avdiev Report’s recent survey underscore the resilience of the property industry in the face of challenging economic conditions. While half of the respondent companies are currently faring well or very well in the current business climate, the industry has had to adapt to changing market conditions with 51% of companies changing their strategy in response to business conditions.
The future outlook is positive with 89% expecting their company will perform the same or better over the coming year. The challenge of maintaining staffing, given high employment and record low underemployment, is expected to persist.
Pay Increases and Remuneration
Competitive remuneration packages and attractive benefits continue to be key drivers in retaining, hiring, rewarding, and motivating employees. As the industry evolves, our contributors are adjusting their strategies to meet the demands of the changing market.
While the overall pay increase of 5% across all sectors of the property industry outpaced the economy-wide rate, it remained below the Consumer Price Index, emphasising the importance of competitive remuneration packages. Nearly half of the survey respondents noted an increase in staff requests for pay rises, largely driven by higher cost of living pressures and matching what had been offered elsewhere.
Just over half of the companies surveyed (55%) gave the usual full pay increase at their last pay reviews, 11% included a catch-up increase, and 26% awarded a minimal increase. Looking to the year ahead, 70% of participants are planning to award the standard increase in the next round of pay reviews.
Top Issues for the Property Industry
The survey highlights several key issues affecting the property industry, with staffing, particularly recruitment and retention, ranking as the top challenge for the next 12 months.
Rising interest rates and their impact on market confidence, debt availability, and profitability are also common concerns. Increasing costs, particularly in construction and staffing, are significant hurdles. The competition for work, cost-cutting, and concerns about the quality of outcomes round out the list of challenges faced by the industry.
These factors are shaping the strategic decisions and priorities of property industry professionals.
Staffing Concerns
One of the most pressing issues for the property industry is staffing. According to the survey, about one-third of respondent companies are experiencing difficulty in recruiting staff, particularly for critical positions such as construction site roles, architects, and funds management. These workforce issues are compounded by the expectation of higher pay from candidates with less experience.
Despite this challenge, there’s hope as staff shortages may be showing signs of easing.
However, high demand for workers continues, leading to increased pay and attractive benefits to attract and retain talent. Staffing costs, recruitment, and retention remain significant concerns, reflecting the competitive nature of the industry.
We look forward to keeping you informed about the latest developments in the property industry. Stay tuned for more updates and analysis in our next newsletter.
Avdiev Property Industry Remuneration Report
The Avdiev Property Industry Remuneration Report is a cornerstone of industry insights, providing comprehensive and up-to-date information on market conditions, remuneration trends, and workforce challenges. Now in its 37th edition, the report remains an invaluable resource for industry professionals. Look out for our 2024 Reports, coming early next year.
For those navigating the fast-paced world of remuneration planning, we offer tailored benchmarking and competitor analysis reports to assist you. Please contact me at debra@avdievreport.com.au or call 0492 974 041 for a discussion.
