This article is from the Australian Property Journal archive
REAL estate agency valuation directors took home 7% higher pay over the past year as property sector wage rises continued to moderate, while despite interest rates, increasing costs, and cautious investor sentiment, nearly half of property companies feel they are performing well, and there is a generally positive outlook for the next 12 months.
The latest Property Industry Remuneration Report from remuneration consultants Avdiev Report – a survey of pay rates and market trends in the property sector – showed a notable increase in companies doing very well compared to last year.
Nearly half of the respondents (48%) report that their businesses are performing “well” (26%) or “very well” (22%) in the current environment. A year ago, only 5% said they were performing very well.
A further 48% in 2024 state they are faring “moderately”, while only 4% describe their company as performing “badly” or “very badly.”
The outlook for the next 12 months is positive, with 33% of companies expecting to be performing better, 60% expecting no change and just 7% predicting worse conditions and performance.
“Companies are adapting their strategies to overcome obstacles, which will be critical to maintaining momentum and growth in this current market,” said Debra Moloney, principal of Avdiev Report.
The rise in pay for real estate agency valuations directors’ pay, to $193,000 per year, was well above the sector-wide wage increase of 4.3%, which was down from the 5% increase of the previous year and slightly above the wage price index of 4.1% and consumer price index of 3.8%.
This was the standard full increase for 63% of companies, while 10% offered catch-up adjustments for staff needing market realignment and 23% awarded minimal increases.
“Managing remuneration budgets has emerged as the top remuneration issue for property companies. With cost-of-living pressures driving salary expectations, businesses are facing a delicate balancing act,” Moloney said.
“While most companies have managed to maintain competitive pay rates, the forecasted median increase of 3.5% over the next year reflects a cautious approach to ensuring sustainability in the face of ongoing economic pressures.”
Property development managers saw the next-highest wage increase, at 4.4% (to $182,000). Senior analysts property investment funds and trust managers ($199,000 per year) and senior legal counsel for finance, corporate and IT ($244,200) both saw 4.0% increases
They were followed closely in annual gains by sales consultants at retirement living and aged care facilities ($83,300), estimating managers in building, design and construction ($312,100) and associate planning directors at design and building consultancies ($171,200).
National leasing manager in retail management saw a 3.3% year-on-year increase to $428,200.
Nearly one-third of companies were under more pressure for pay increases due to higher cost, and nearly seven in 10 businesses expect the standard increase in 2025 while minimal pay rises are expected for 28%.
A third of companies are facing recruitment difficulties, 19% worse than 12 months ago.
Regulations granting employees the right to disconnect has had minimal impact on the majority of companies (91%).
