Since the introduction of social distancing rules there has been a large slump in people buying homes in the Peel region, which is expected to cause a major decrease in property values over the next six months.
A number of issues have already caused a downturn including higher unemployment rates, the closure of WA borders and businesses shutting down.
First Choice Valuation Services owner Kenneth Pratt warns COVID-19 will cause a 10 to 20 per cent decline in property values throughout the Peel region.
"People losing jobs, and businesses and borders closing is creating a fear-based issue for real estate," he said.
"COVID-19 is generating a fear among everyone and when people are frightened they are not thinking about buying, they are looking for security."
This would greatly impact the Peel region as most property sales were already entry level homes, he said.
"Up to the $400,000 price range is where the majority of house sales occur in Mandurah," Mr Pratt said.
"This market is now more susceptible to people who have lost their jobs who are on a lower income anyway so there is really no incentive at the moment for buyers to be there."
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Mr Pratt also shared concerns for canal properties, which are at the higher end of the price range in Mandurah.
"The people who would normally come and buy these properties are reasonably intelligent people and know there is going to be a fall in prices," he said.
"They will now be hanging back and waiting to see where it goes."
With property values expected to drop across the Peel region, Kenneth advises people looking to sell to "let the air clear" first.
"Due to COVID-19 there is currently no incentive to buy properties," he said.
"We have already seen quite a few properties being withdrawn from the market.
"Only sell if you desperately have to at the moment otherwise I recommend waiting for at least six months."
Many residents have queried when property values will return back to their original price prior to COVID-19.
"Mandurah has traditionally always been slower than the metropolitan area to recover from a slump in terms of prices," Mr Pratt said.
"When we finish seeing Perth prices improve after COVID-19, then we could expect six months or so later Mandurah might get that kick along.
"Then again, if prices remain cheap and everyone is buying then people could come racing down to Mandurah as soon as rules lift."
With uncertainty over when COVID-19 restrictions will lift, the Peel region's property values are expected to suffer for at least six months.
