It’s no secret the New Zealand property market has experienced a boom in recent years. With the average house price skyrocketing 90% in Auckland in the past decade, the market has been an investors dream. And with reports reinforcing a view that housing is set to heat up again in 2020, what does this mean for property professionals and job seekers?
With the predicted ramping up of the property market this year, experienced candidates are in hot demand. If you have a strong work ethic, solid sales and negotiation skills and a proven track record in the industry, you can count on catching an employers eye. And with a stronger focus placed on training in a candidate-short market, this means good news for entry-level candidates.
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Strong start for New Zealand property market in 2020
QV’s House Price Index for the start of the year shows momentum in the market continuing, with the average residential property value up 4.4% year-on-year. The average house value across New Zealand is now at $714,747 — up 2.5% in the three months to January. Steady demand across the spectrum of buyers, as well as a shortage of listings, means values are on the rise.
January residential auction activity has also shown to be up on the same month last year, suggesting a promising start for the year ahead. Interest.co.nz monitored 136 property auctions last month, up 70% on January 2019.
Brad Olsen, an economist at Infometrics, reported that data has reinforced the view that housing was set to ramp up again in 2020.
“Low property stocks and low interest rates are increasing housing activity and prices. House price inflation in key urban centres are either remaining at current levels or heading higher still,” he said.
“The stage is now well and truly set for further house price gains across the country, even as a focus of the election is likely to be on housing, homeownership, and rental costs again.” (Source: Stuff.co.nz)
Employment trends in the property industry
With Real estate agencies estimated to have earned $437 million in residential sales commissions in Q4 of 2019, it’s easy to see the appeal of a role in the property sector. The market is booming and candidates can expect steady opportunities in the industry in 2020.
2019 saw the highest opportunities for roles in facilities management and property management, followed by leasing agents and registered valuers, and trends are looking consistent for these roles in 2020.
A junior facilities manager can expect to earn between $50k-$70k, while a more experienced person in the role with more than three years experience can earn between $70k-$140k+.
Property managers with 3-6 years experience can look to earn between $80k-$100k, while a senior property manager with 7+ years experience can expect to earn between $100k-$125k per year. That being said, there are companies out there willing to pay $130k+ for top talent integral to their business.
Asset managers with 4-6 years experience are likely to earn between $110k-$140k, while senior asset managers with 7+ years experience can expect to earn between $140k-$180k. Development managers are likely to sit at the $150k+ mark.
Are you ready for your next property challenge? Our property recruitment experts appreciate the close-knit and nuanced nature of the property market and are equipped to tap into well-established industry connections. Speak to one of our recruitment consultants today.