The salary outlook for mid-level executives and junior staff in property has improved, according to the latest report from Avdiev.
Salary increases for mid-level and junior staff have accelerated past those for senior executives, according to the latest Avdiev Property Industry Remuneration Report.
Rita Avdiev, managing director of the Avdiev Group, says salary movements in the year to date for property participants have been 4 percent for mid-level and junior staff and 3.5 percent for senior executives. The median for the previous year was 4 percent for senior staff and no change for mid-level or junior staff.
According to Avdiev’s latest report the top three salary movers, by very small margins, were in the real estate, sustainability and corporate real estate categories.
The bottom three movers were in the development, property investment / funds management and building categories.
However, Avdiev says the picture is much brighter at board level. The group’s Board Report 2012 shows 29 percent of companies in the ASX Real Estate Industry Group increased their non-executive directors’ fees by an average of 15 percent.
Yet, property lags other sectors in board remuneration increases. Avdiev says 42 percent of the ASX Top 200 companies increased their non-executive directors’ fees by an average 17 percent.
Avdiev says sectors to watch are:
Development: look for governments in NSW, Queensland and Victoria to streamline and rationalise planning, and monitor the availability of finance
Investment/funds management: an increase in superannuation from 9 percent to 12 percent will flow through to these sectors. However, investors remain wary
Commercial building: this sector will only improve when development begins again in earnest. The same goes for residential, but watch for land releases, planning restriction relief and movement in the availability of finance
Agency: agents will continue to do well while the banks sell down assets in distressed portfolios
Retail management: consumer confidence is the key, meanwhile retail leasing is busy – there is lots of retailer turnover and tenants need replacing
* 42% of the ASX Top 200 Companies increased their Non-Executive Director’s Fees in 2011. The average increase was 17%.
*29% of the companies in ASX Real Estate Industry Group increased their Non-Executive Director’s Fees in 2011. The average increase was 15%.
The 26th Edition of the Avdiev Property Industry Remuneration Report, with data for 300 positions in 11 market sectors of the industry