BIS: Virus to decimate property industry

BIS Oxford Economics had previously forecast that 173,000 new dwellings would be built across Australia in 2020-21. The firm now warns that residential construction activity could fall by up to 19% response to the coronavirus pandemic, to around 140,000 dwellings. MD Robert Mellor also expects residential property sales to stall in coming months, while the sharemarket correction will have an impact on confidence among property investors:

“I would say worst case, 140,000… If you put probabilities on it, it’s less than a 10 per cent chance it could be less than 140,000 at this stage. But you don’t promise anything too much at the moment.”

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