State government elections unsettling property companies: Rita Avdiev

Property industry pay increased at an annual 3% median - slightly above the ABS figure of 2.7% annual increase for the general workforce, and the annual CPI rise of 1.7%, according to the latest report by Rita Avdiev, managing director of the Avdiev Group.

The latest Avdiev Remuneration Report 2015, the product of a formal Australia wide survey of property, investment and construction employer companies, finds that business conditions have remained stable or improved for the majority of survey respondents.

But for companies which operate Australia wide, conditions vary from state to state, with the east coast reported to be doing better than elsewhere.

“Business conditions in the property industry will continue to fluctuate and possibly deteriorate the longer the country remains on hold” said Avdiev.

"While the new state governments continue to review the committed decisions of their predecessors, new projects are languishing on drawing boards and in boardrooms.

“The results of two recent state elections have introduced a note of caution and uncertainty into the previous positive sentiment in the majority of property and construction companies.

"A return of the current NSW government at the upcoming election may see a rapid influx of investment and new projects into the state.

“Many contributors to the Avdiev Report are affected by the hesitation of their clients to proceed with decisions which they made in 2014.”

She said forecasts for next pay reviews are 3% overall, but may be tempered by fluctuating business conditions.

Junior staff who are in a rapid career development phase are flexing their muscle, getting bigger rises than the seniors from companies pushing for new skills and staff renewal.