TRADITIONAL hierarchies are being disrupted, millennials are the new force in the property industry. Seen as the most important demographic, they continue to enjoy higher pay rises and are make strategic decisions to climb the corporate ladder faster, according to the Avdiev Property Industry Remuneration Report.
According to the Avdiev Property Industry Remuneration Report March 2019, millennials (born between 1981 and 1996) continue to outpace their senior colleagues.
Avdiev Group managing director Rita Avdiev said millennials now form about 20% of the general workforce and are a new force in property markets, as a result companies are undergoing generational change and traditional hierarchies are being disrupted.
“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,” she added.
The Avdiev report also provided a glimpse into millennials’ strategic career decisions and their interim goals.
A graduate assistant architect starting with an average pay of $61,000, is looking to be promoted to senior design architect ($120k+), before changing to the building sector, as a designer manager ($150k+) and head of design ($250k).
In the valuation profession, graduate valuers start at an average of $64,000, promoted to manager of valuation ($130k+), before they jump across to funds management as a senior valuer ($200k+) and portfolio manager ($300k+).
In the sales profession, graduate agents start around $71,000, promoted to manager of sales ($150k+), recruited into funds management as capital transactions and sales executive ($200k+) and promoted to product development manager ($300k).
However, it is building graduates who raced to the top, starting at $83,000, they get promoted to project manager ($150k+), before making the switch to the development sector, getting a job as a project director ($300k+) and eventually promoted to general manager of a property development company ($500k+).
Avdiev said millennials are now seen as the most important demographic globally.
“Millennials are young, ambitious, with fresh attitudes to speed, change and results.
“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,” she continued.
While the news is good for millennials, the report found property industry business conditions remain benign with falling house prices dampening sentiment which is having 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.
“Media focus on falling residential property prices has sent a message to the community about the cyclic nature of property assets, but overshadows good news from healthy commercial and industrial market sectors. In major CBDs commercial vacancies are falling and rents are rising. The fallout from the Banking Royal Commission findings have affected lending policies and practices of the banks and seriously impacted the activities of developers, builders and consultants,” she said.
“Our subscribers have reported a good volume of business activity to date and for most, only a modest impact on their plans to date. But they have strategies in place for the future.
“Subscribers reporting a stronger impact were those directly affected by the global economy through their clients, parent company or location of business activities. Global macro-economic factors are felt to be highly relevant to investment activities and closely monitored by the funds. They are keeping a keen eye on the outcomes of two elections in the next few months,” she added.
Because of the weaker sentiment, pay rises in the industry have moderated, but still ahead of the general workforce at 2.5% overall.
‘This time last year we 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%,” Avdiev said.
Over the 12 months to February 2019, senior interior designers enjoyed the highest pay increase of 3% to $118,000, however that has moderated from 3.5% in February 2018.
Senior leasing real estate agents were the only ones to witness an increase, up 3% to $148,000 compared 2.9% in February 2018.
Retirement living and aged care senior village managers have seen their pay rises by only 2% to $134,000 versus 3.3% in 2018.
Meanwhile two new roles have been created in the industry, operations manager in building, design and construction with an average pay of $395,000; and innovations manager who are taking home $255,000.
Australian Property Journal