Ella Ross and Thomas Edwards were all set to buy land in southern Tasmania and build their first home until the coronavirus pandemic put a hold on their plans.

Key points: Property prices are expected to tumble around Australia in the wake of the coronavirus pandemic

Property prices are expected to tumble around Australia in the wake of the coronavirus pandemic One young couple were about to get into the market when their casual work status brought them undone

One young couple were about to get into the market when their casual work status brought them undone Airbnb operators can no longer rely on the tourism market to fill their booking roster

"Our budget isn't very high being students and not working full-time, however we found a block here that suited us, it was in our price range and then we … got a design done up," Ms Ross said.

Ms Ross, 23, works for a seaplane tour company and is a teacher's assistant, while Mr Edwards, 22, is a barista.

The casual workers had no problem initially applying for a bank loan — but when the coronavirus outbreak hit, the couple could not get the mortgage insurance they needed to secure the loan.

"[The mortgage insurance company said] unfortunately casual work could not be counted on in this time, so they declined us," Ms Ross said.

For now, the couple have had to move back home with their families.

The REIT head says he does not see the local market "bubble bursting". (ABC News: Angela Ross)

National property prices set to plunge

Economists have warned property prices could fall 20 per cent nationally as unemployment reaches 10 per cent.

In Tasmania, where property prices have long defied the national trend and risen sharply, the industry is warning there are difficult times ahead.

Real Estate Institute of Tasmania chief executive Mark Berry said after big price increases, Tasmania's housing market was already beginning to plateau.

"I think prices will slow down, there won't be the increases that we've been seeing over the last quarters that we've been reporting from the Real Estate Institute, but I certainly don't see a bubble bursting," he said.

"Tasmania will be very well protected from this by simple mathematics we've still got more purchasers out there than properties for sale.

"We're coming off a very low base in relation to the amount of properties on the market; the most recent numbers I heard were just under 12,000 properties for sale. Across the state, we're going to be relatively sheltered from it for a period of time."

But getting a loan could be another matter, with Mr Berry saying it wasn't just first homebuyers struggling.

"I am already hearing that the investors out there are finding it a little bit more difficult to get investment loans to go through, because there's uncertainty on the rental side," he said.

Airbnbs switching to rentals

Another big change to shake up Tasmania's real estate market is a wave of former Airbnb properties hitting the rental market.

Airbnb operators have had to adapt to the loss of tourists. (Supplied: Airbnb)

"We've had a shortage of rentals in Tasmania but now there is opportunity for people to get into the market," Brian Wightman, from the Property Council of Tasmania, said.

The State Government has announced a raft of economic support measures for small business, including waiving land tax for 2020-21 and concessions for businesses on water and electricity bills, as part of the local response to the COVID19 pandemic.

Mr Berry said over the past three weeks, 200 properties had been converted from Airbnb accommodation to long term rentals.

"About two thirds of those are in the southern part of the state and the other third are around Launceston and the North West Coast."

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He said property owners still need to pay their mortgages, given they can no longer rely on the tourism market.

"The vacancy rate is still very low, so there are tenants out there who are still looking for properties," Mr Berry said.

"At the moment it's good, but this time tomorrow that might be a different thing, given how quickly this situation is changing."