While the property sector will endure a sharp downturn, it is unlikely to be a “catastrophic drop”, according to Westpac senior economist Matt Hassan. Last month the federal government banned auctions and open houses indefinitely as authorities seek to slow the spread of the novel coronavirus COVID-19.
Data house SQM Research claims the crackdown could result in a 30 per cent decline in dwelling prices, with Sydney and Melbourne expected to be the worst hit.
However, Mr Hassan told Sky News auctions only account for between 15 to 20 per cent of total sales across the whole market.
He said the price effect from the virus is likely “to come into effect quite slowly.”
“We won’t go to the 80, 90 per cent catastrophic drop in turnover,” he said.
“I think it is plausible… that we will just see people switching to online and private sales channel and we still see some property ticking over.”
Business Weekend is supported by Westpac
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