Workers Don’t Feel Quite as Powerful as They Used To
Fears of an economic downturn are shaking some people’s career confidence, driving them toward stable jobs—and even back to offices.
Fears of an economic downturn are shaking some people’s career confidence, driving them toward stable jobs—and even back to offices.
Becca Smith will be back to work in no time.
Laid off from her sales position at a startup a couple of weeks ago, she says she’s received more than a dozen inquiries from recruiters in response to a LinkedIn post about her job loss.
Yet something has changed since the 40-year-old Indiana mother started at her former employer last summer. Back then, she was determined to work from home—and felt sure she could get her way. She also had the confidence to join a fledgling business amid a roaring economy.
“I will give priority to larger, more-established companies for this job search,” says Ms. Smith, whose old company was venture-funded and cut about one-third of the team to conserve cash. She adds she’ll consider reporting to an office part time. She’d also like her next job to involve selling a product customers need even in bad times, rather than a luxury that could get cut from the budget when money is short.
Though the labor market remains tight and many people still have leverage to negotiate high salaries and remote accommodations, some are bracing for a day when things won’t be so great. As unemployment claims tick higher and business leaders like Elon Musk try to reassert their in-office dominance, workers are showing a little less swagger and looking for more stability than they did just a few months ago.
It’s a strange limbo. Working conditions are about as good as they’ve ever been for many people, and office workers’ complaints can seem petty by historical standards. (Imagine your 2019 self griping about being required to work in an office a few days a month.) Yet a loss of total remote freedom, coupled with sobering economic forecasts, can make it feel like workers’ power is slipping away.
Some companies sense the change and are wresting back more control over how much they cater to employees.
Boston Properties Chief Executive Owen Thomas says his tenants are growing bolder about office callbacks. The national office occupancy rate hit 44% last week, according to an estimate by Kastle Systems, which tracks building-access-card swipes. That’s the highest since the onset of the pandemic.
Employers’ fear that workers will flee for other jobs if told to return to their desks is beginning to subside.
“Some companies are doing layoffs, and that puts pressure on people to get back to the office and stay closer to the senior leaders,” says Mr. Thomas, whose firm is among the largest commercial landlords in several major cities.
Treasury Secretary Janet Yellen has said repeatedly that she doesn’t expect the U.S. economy to fall into another recession. Such reassurances wouldn’t seem necessary if not for credible concerns, however, and it might not take the R-word to spook workers.
Career coach Phil Rosenberg says his calendar is filling up with clients who worry it’s now or never—or not for a while, at least—to snag a job with the pay and flexibility they want.
“People are trying to land before the next downturn,” he says.
Luis Caballero, one of Mr. Rosenberg’s clients, says he’s relieved to be starting a new position as a marketing executive next month.
He left a large company in late 2020 with a big enough severance package to support his family for two years, by his estimate, and initially wasn’t in a hurry to find his next long-term fit. Why would he have been?
“Companies were desperate for senior leadership,” says Mr. Caballero of the record numbers of workers who have quit or switched jobs over the past 12 months. “Several friends of mine were writing their own ticket.”
Mr. Caballero, 50, took what he describes as a short-lived “rebound” job last year but quit in February. Searching anew, he says the market“was not the gold mine I had heard about.” Many high-level roles paid less or had heavier workloads than he anticipated.
Mr. Caballero says he accepted an offer that met his expectations—with one major compromise. He’ll drive 10 hours round-trip from his home in Arizona to an office in California, staying over a night or two, to satisfy a requirement to work in person a couple of days a week.
Taking a new job can be risky in the event of a downturn. Some businesses take a last-in-first-out approach to downsizing. As the pandemic fades, companies that grew quickly when people were mostly homebound could cut back as life normalizes. Peloton, Netflix and Carvana already have laid off staff this year.
“If I’m a job seeker these days and I’m smart, I’m considering the business: Is it a business that just developed because of Covid?” says Stacie Haller, a career counsellor at ResumeBuilder.com.
For now, though, the labour market still favours workers, especially in certain industries, she says.
Competition for talent remains intense in biotechnology, with candidates often able to pick among several offers, according to Jean Sabatini, head of staffing at Tango Therapeutics in Cambridge, Mass.
Tech workers, too, enjoy considerable bargaining power, though some have been humbled by the sector’s volatile stock-market performance and shrinking venture-capital pool in recent months, says Allan Jones, founder of an HR software startup in Los Angeles.
The hiring dynamic for most of the past two years has been “bonkers,” he says; prospects frequently Zoomed into job interviews with a confidence bordering on arrogance and scoffed when told that Mr. Jones’s company, Bambee, is office-centric.
Lately, the conversations have changed.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
An expansive waterfront property with global designer flair.
It’s bold to refer to any property in absolutes, but here Portovenere Estate represents Clontarf’s grandest waterfront statement and its most coveted residence.
Designed in the 1960s, the two-storey, 7-bedroom, 8-bathroom and 5-car parking pile is set on an impressive 3015sqm waterfront plot. Since its inception, the home has had no expense spared in its contemporary reimagining.
Within, the home sees a global interpretation of design elevated by bespoke luxurious finishes from all over the world at every turn.
It starts from before you enter the front door — here an imported Ghizzi and Benatti fixtures from Italy. Once inside, one notices the heated marble and Savadi timber flooring that sweeps through the multiple living and entertaining zones including the family room, formal and casual dining.
Here in these living zones is a combination of designer furnishings and chandeliers from Fendi, Versace and Articolo and a made-to-order Ravens 11 ping-pong table — all of which is available as an option when purchasing the home.
Elsewhere the home’s kitchen is replete with Manhattan calacatta marble and is fitted with Gaggenau appliances and Sub-Zero refrigerators. The butler’s pantry is almost equally luxurious with Miele commercial appliances found here.
Further, the home’s multiple bathrooms are, too, fitted with Ceraba mosaic tiles and Gessi luxury tapware and shower systems.
Throughout the home’s many bedrooms, each is fitted with a timber veneer bedhead design, while the master bedroom sees a Madrona Burl veneer back panel and is complete by its own expansive ensuite (with a spa) and walk-in robe.
Both levels of the home feature outdoor space built to entertain fitted with outdoor BBQ appliances, pizza oven and Janus et Cie furnishing. Further outdoor amenities include the L.A Lakers half-court basketball court, mini soccer field and elevated podium pool.
Back inside, the home is fitted with a number of mod-cons including a poker table, in-home cinema, wine cellar, gym, salon and study with home automation and security managed by a Savant smart system.
A sandstone adorned rooftop entertaining terrace tops off the heady list of amenities that this residence holds, offering stunning views across the waterside suburb and beyond. All levels are accessed via a KONE lift.
The home is also privy to completely contained staff quarters suitable for an in-house au pair.
The property is listed with Monika Tu (+61 409 898 888) of Black Diamondz Property Concierge with a price guide of $35m -$38m; blackdiamondz.com.au
The city-fringe locale continues to boom with its prized mansions and natural amenities
From stately historic mansions to expensive new builds with underground garage space for 20 cars, Medindie, the exclusive inner northern suburb of Adelaide, has always been a well-heeled location with buyers lining up to own property bearing the blue-ribbon address.
Many keen buyers and investors are prepared to wait years for a grand Victorian mansion or a more contemporary sprawling home to come on the market in the area. Such properties tend to move fast. Stunning mansions with impressive facades, sweeping lawns, manicured gardens, tennis courts and swimming pools are located on expansive 1-acre landholdings that cannot be developed or subdivided, making them even more attractive to buyers.
The suburb is home to many historic dwellings including Willyama, built in 1883 by prospecter Charles Rasp, who discovered the rich ore deposits at Broken Hill in New South Wales, and The Briars, built in 1856 for George Hawker, which became a hospital.
Robe Terrace is the suburb’s star attraction, lined with attractive mansions including The Elysian, a modern residence which smashed the state’s residential sales record after selling in excess of $10 million last year. Pretty Victorian villas, contemporary terraces, townhouses and cottages are also sought after, but it’s those grand mansions that are the drawing card.
Medindie offers quality inventory at all levels and attracts families looking for a long-term hold and professionals after a “lock and leave” lifestyle seeking a comfortable base while in Adelaide.
It appeals to medical professionals wanting to be close to major hospitals as well as farmers based in the north of the state wanting a weekender close to the CBD, North Adelaide and Adelaide Oval, a sports and entertainment venue
Nature lovers and fitness fans enjoy the Adelaide Park Lands, known as Australia’s biggest backyard, while the River Torrens Linear Park Trail is a spectacular 30-kilometer nature walk.
It is also on the doorstep of vibrant cosmopolitan precincts including Prospect Road, Walkerville Terrace and O’Connell Street, which showcase charm and convenience.
There is direct access into the city centre, Adelaide Zoo and the Botanical Gardens, plus it’s an easy walk into Rundle Street precinct for shopping.
Adelaide real estate agent Stephanie Williams of Williams Luxury Real Estate said Medindie exudes glamour and prestige with some jaw-dropping homes.
“As well as stunning properties, there are some new properties with show off features such as underground accommodation for 15 to 20 cars and mind-blowing cellars,” she said.
The suburb is a 10-minute drive north from the city center and a 20-minute drive to Adelaide International Airport.
Medindie is adjacent to the Adelaide Park Lands, north of North Adelaide, and is bounded by Robe Terrace to the south, Northcote Terrace to the east, Nottage Terrace to the north and Main North Road to the northwest. It is close to Adelaide’s central business district and surrounded by parklands.
According to Kaytlin Ezzy, CoreLogic research analyst, Medindie houses recorded a median value as of April of A$2 million with top-tier values ranging from $2.38 million to $3.47 million. Compared to the nearby Prospect-Walkerville, Medindie’s median value is 62.6% higher, equivalent to a value gap of approximately $771,863, and nearly double (91%) the median value of the greater Adelaide region ($1.05 million).
Ms. Ezzy said the trend in Medindie’s house values has been positive over the past few years, rising 30.1% over the year to April and 57.2% over the past five years. This has resulted in the median value rising from $1.27 million in April 2017 to $1.54 million in 2021 before rising $463,644 over the past year resulting in a current median value of just over $2 million.
Medindie continues to be one of South Australia’s most prestigious suburbs and is home to generations of families who have resided there for centuries as well as newly wealthy buyers, according to Ms. Williams.
“Once they buy there, they remain, as it is an extremely tightly held location, offering unsurpassable exclusivity and prestige—significant mansions and luxurious estates and properties with prominent land holdings have encouraged affluent families to invest in this area for generations,” she said.
There is a very pronounced short supply of luxury properties on the market in Medindie, where there is a variety of architecture from historic Victorian styles to modern contemporary housing.
There are attractive villas, terraces, townhouses and cottages that are also sought after.
Ms. Williams said lifestyle estates and family homes always sell within their scheduled sales campaigns whether via expressions of interest, auction, or private treaty.
“Covid has changed the buying patterns of the luxury market in particular with wealthy clients changing their priorities to more home-based activities, with health and wellness being a major priority,” Ms. Williams said. “The desire for swimming pools, tennis courts, beautiful established gardens, wellness retreats and home offices being more popular than ever before. Luxury homes have never been in greater demand.”
Statistics show Medindie has 394 residential homes for sale compared to the nearby suburbs of Norwood, which has 1,901 residential homes on the market, and St. Peters, which has 870 residential homes for sale.
Buyers are attracted to Medindie for the magnificent adjacent parklands, its proximity to central Adelaide and larger-than-average block sizes.
It is also the only suburb within a short stroll of the exclusive girls-only Wilderness School.
Medindie is surrounded by shopping locales, including the Rundle Mall and Rundle Street in the city, which offer a wide range of luxury boutiques, including the David Jones department store. It is also very close to fashion-forward Melbourne Street and cosmopolitan O’Connell Street, the North Adelaide Shopping Village, and the shops along super-trendy Prospect Road.
Grocery stores in North Adelaide include Cibo Espresso, The Flying Fig, Coffee Gods Café, Romeo’s Foodland and The North Adelaide Village.
Top restaurants include The Lion Hotel, a South Australian icon that is directly across the Parklands, and North Adelaide has the Gin Long Canteen, Ruby Red Flamingo and Marrakech. The nearby Adelaide CBD has a vast range of excellent restaurants including Soi 38 known for its Thai cuisine, Italio-American inspired Fugazzi Bar and Dining Room, Osteria Oggi, Japanese-inspired Erato Teppanyaki, Arkhe on The Parade where chef Jake Kellie from Michelin star Burnt Ends in Singapore stars, and Orso on Kensington Road that has a following for its seafood and pasta.
Private schools include the Wilderness School, St. Peters College, Prince Alfred College and St. Andrews School. Nearby public schools include the new Adelaide Botanic High School, North Adelaide Primary School, Walkerville Primary School and Prospect Primary School.
Property tycoons, farmers, bankers, medical specialists, successful IT professionals and socialites all call Medindie home.
Ms. Williams said the market in Medindie continues to be incredibly strong, with buyer demand for this esteemed suburb at an all-time high and showing no signs of slowing down.
“We are continuing to experience a very high level of buyer inquiry for homes for sale in the area and some homes are selling off-market without reaching the paper or any online platforms,” she said.
“The suburb has always performed extremely well from a capital growth perspective and consistently features in the top 10 performing suburbs in South Australia. The average house price in Medindie over the past 12 months is A$2.68 million, which is an incredible growth of 82.4% during this time.”
Ms. Essy said while still reporting strong quarterly growth compared to the national trend (5.6%), capital appreciation across the Adelaide house market has started to ease.
“With the cash rate starting to rise and consumer confidence continuing to trending downwards, it’s likely the housing market is inching toward a downswing, with the higher end of the market typically showing more volatility both in the upwards and downwards phase of the cycle,” she said.
Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 18, 2022.
In the year to May, an additional 497 markets joined the million-dollar club.
A record number of Australians spent $1 million or more to purchase a home in the past 12 months according to CoreLogic’s annual Million Dollar Markets report.
Over the year to March 2022, CoreLogic collected 596,733 sales nationally up 19.8% from the 497,923 recorded over the previous year. Of those sold this year, 23.8% sold for $1 million or more.
In the year to May, an additional 497 markets 450 houses and 37 unit markets) joined the million-dollar club bringing the total markets to 1367 or 30.4% of house and unit markets analysed in May to a median value of $1 million or more.
“High consumer sentiment, tight advertised supply, and low-interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4% over the 12 months to January,” said CoreLogic Research Analyst Kaytlin Ezzy.
“Despite values having risen across all capital cities and rest of state areas annually, we have seen a divergence in growth conditions across markets over the year to date.
“Since January, dwelling values across Sydney and Melbourne have started to decline, while values have continued to rise across South Australia and Queensland. More recently, Canberra, which had previously recorded many months of consecutive growth, recorded its first falls in dwelling values in some years in May.”
Sydney suburbs made up 26.3% of the new million-dollar markets with more than half of all Sydney sales over the 123 months to May transacting at or above $1 million.
In Sydney, 448 house and 104 unit markets have a current median value of $1 million dollars or higher, an increase of 26.6% from the previous year. The new million-dollar markets are largely concentrated in the city’s South West (30) and Outer South West (15) as well as the Central Coast region (20).
In the year to May, 51.9% of transactions in Sydney sold for $1 million or more. Bellevue Hill in Sydney’s Eastern Suburbs is the most expensive house market, both across Sydney and nationally, with a current median value of $8,024,682.
Elsewhere, in Melbourne 212 house and 11 unit markets had a median value at or above $1 million in May majority of which are located in Melbourne’s Inner (39), Inner South (42), Inner East (30) and Outer East (30).