Sydney Market Update – Spring 201826th September 2018 / Market Updates
Welcome to the Sydney market update for Spring of 2018. It’s been an interesting 2nd & 3rd quarter, and now well into the new financial year, there is an air of positivity around. The feedback that we are getting from our client base is that there are opportunities out there and that there are no obvious signs of things slowing down dramatically.
Within the NSW Architectural market, the main driving forces in terms of sectors remain the Infrastructure, Educational, Health, Public, Aged Care and Commercial markets. The multi-unit Residential market is definitely quieter for us than last year but there are still a few key projects that are fuelling that market, especially at the higher end, quality wise.
In terms of which jobs are in higher demand, compared to last year the need for Senior Project Architects has softened a touch. Our clients were ‘red hot’ on those candidates that could take a project and had the experience to run and ultimately deliver it, last year. This has been replaced with the need for production staff in the way of Architectural Technicians or Graduate Architects to help at team level. Candidates with Revit experience in this regard, remain in high demand.
According to this year’s 10th Annual major project conference set to take place in November, “Surpassing past years with a record investment of $87.2 billion towards state infrastructure, New South Wales is gearing up for some incredible upgrades. Over the next four years, New South Wales is expected to have more major infrastructure projects being delivered than any other state; most notably the $14.4 billion budgeted for public transport infrastructure and a monumental $8 billion for major health facilities, upgrades and redevelopments.” Exciting times!
These key projects seem set to keep the Sydney market busy, especially the planned redevelopment of Central Station, continuation of the Sydney Metro, and a number of large Hospital projects.
Conversely, the NSW Residential market has shown a few signs of slowing down recently which has definitely had an impact on the market. It is important to note that throughout the last few years in NSW, the residential construction market has been overloaded with projects and opportunities and now what we are really seeing is more of a levelling out. Lately we have seen that there has been somewhat of a shift into mixed use residential projects incorporating 4 and 5 star Hotels, with a number of clients seeking candidates with this particular experience.
The interior design market has once again remained busy this last quarter. A strong hospitality market including projects across hotels, bars, restaurants and pubs has been the lifeblood of the market in recent times. Retail and Residential markets have also remained strong.
The one area that has not been ‘super busy’ in Interiors, is the corporate fit-out market. This sector, whilst having some interesting roles available has also seen a few firms struggling and in some cases, having to let go of staff.
One interesting point of discussion for the Interiors job market is the potential knock-on effect of the government’s decision to remove Interior Designers from the list of eligible occupations that can apply for the 4 year Visa (186) that can lead to a permanent residency.
This will definitely impact on the number of skilled and experienced, international Interior Designers that decide to consider Australia to continue their career and potentially settle down. The Interiors market in Sydney has always relied on good international designers to support a busy work load and in fact bring new design ideas and trends in to what is rapidly changing and developing industry.
The knock-on effect? Demand for locally experienced and educated designers to go up, salaries to potentially increase rapidly and the number of contract roles offered to combat the lack of available candidates.
At the present time we are seeing that there is strong demand in the market for good mid-level Interior Designers with between 3-7 years’ experience. Interiors candidates with Revit experience are starting to find that they have more and more opportunities as Revit increases its popularity with Interiors studios.
Finally as we know, Rates and Salaries are a constant source of conversation in both our Sydney and Melbourne offices. Many groups having been through mid year reviews recently, and others gearing up for end of year reviews. Please check out our article here to gain some insight into this area. Also, our rate and Salary schedules were updated recently so please contact Monica Raviolos if you need to see the most up to date figures.
As ever, if anyone is looking for advice on their career, help with staffing for their office or just wants more info on the current market, feel free to contact Jamie Keay on 02 9233 4445 or [email protected]
Partner – BT&P Sydney