Property industry business conditions remain benign: Avdiev
Conditions in businesses within the property industry remain benign with a focus on strategies for future success, according to findings in the latest Avdiev Property Industry Remuneration Report.
The report found that companies with foreign clients, parent companies or branch offices are most affected and falling residential prices have dampened sentiment with a flow on effect for developers, builders and consultants working in related market sectors.
"After 28 years of continuous economic prosperity a reminder of the cyclic nature of property was well overdue," said Rita Avdiev, Managing Director of the Avdiev Group, remuneration consultants.
"Our subscribers have reported a good volume of business activity to date and for most, only a modest impact on their plans to date."
The authors note that media focus on falling residential property prices has sent a message to the community about the cyclic nature of property assets, but is overshadowing good news from healthy commercial and industrial market sectors.
With the moderation of activity, property remuneration has also moderated. This time last year, it reported an overall increase in the property markets of 3% compared with the latest finding of 2.5%.
The latest ABS figures as at December 2018 showed the Wage Price Index rose 2.3% through the year and the Consumer Price Index 1.8%.
The report found that "the young continue to outpace their senior colleagues".
"Median pay rises were 2.5% overall, with spikes in sectors where shortages of competent people exist," it said.
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According to Avdiev findings, millennials are invading traditional hierarchies.
Following an influx of young professionals, encouraged by a Property Council campaign, there has been generational change in the property industry.
Corporate restructuring in the last few years has encouraged millennials to rise up the ranks.
"Millennials are young, ambitious, with fresh attitudes to speed, change and results,” says Rita Avdiev.
"With the property industry and global and local economies in a state of flux, their ways of dealing with what comes next will be interesting to watch."
