"Buyers are less willing to transact and sellers are less interested in testing the market. The ban on public auctions and open homes has compounded this challenge for many agents."

More than two out of three (68 per cent) agents said they have seen a decline of more than 50 per cent in the number of buyer inquiries over the week of March 27-30 and April 3-6.

Around two-thirds (60.5 per cent) said seller inquiries have slumped by more than half over the same period.

Doug Driscoll of Starr Partners says their group suffered a 70 per cent drop in listings and recorded a 40 per cent drop in sales in just a fortnight.

Douglas Driscoll, CEO of Sydney-based agency Starr Partners, said the group's listings have plummeted by about 70 per cent over the last fortnight alone, while sales were down by about 40 per cent.

"I think what we're seeing is quite an accurate barometer of what others are also experiencing as we're fairly representative of the industry," he said.

"There are fewer buyers around, understandably. We've seen the number of buyers halve during the past couple of weeks, because when there's uncertainty, people will sit on their hands.

"The drop in listings is quite severe. You can't sell what you don't have, that's why we're also experiencing lower sales volumes."


By contrast, Melbourne-based real estate agent Ryan Castles of Belle Property Sandringham said listings had been creeping up in the city.

"There's a lot of properties that are still sitting on the market that haven't sold because there are fewer buyers and they have more choices," he said.

"I've also seen an increase in stock as people look to free up some cash. I think there are going to be a lot of asset-rich, cash-poor people who will be looking at selling."

'Really tough time ahead'

Mr Driscoll said prices were certainly going to drop as a result of the COVID-19 crisis.

"I am absolutely anticipating a downturn in the property market where we'll see prices drop. I just can't see how house prices aren't going to be affected by this crisis."

Mr Driscoll said he was also expecting the property downturn to trigger consolidation in the industry as some agencies would be forced out of business.


"I think we'll see a number of casualties," he said.

"I expect to see a large number of real estate professionals leaving the industry.

"Unfortunately, we're likely to see some real estate businesses close. Some may merge, consolidate or even acquire other agencies.

"But I think we're in for a really, really tough time ahead."