Today AFR has quoted Louis Christopher from SQM Research.
"If most of the restrictions were kept on for, say, a solid six months as a result of potentially a second wave of virus attack occurring, this would be a very bleak scenario for the housing market."
"This would be the worst-case scenario that's very much on the cards. You couldn't rule out a 30 per cent decline in property prices if restrictions were extended for six months. "
"Because, in my view, Australia's economy would enter into a recession with a high probability of entering into a depression."Mr Christopher said the Sydney and Melbourne markets were particularly vulnerable to such a scenario.
"Despite the market correction during 2018 and early 2019, these two markets remained overvalued and there was a lot of debt supporting these markets," he said.
