Property market meltdown could ruin small businesses, treasurer warns

Treasurer Josh Frydenberg has warned that the property downturn in Sydney and Melbourne could flow into the broader economy, smashing small businesses and family budgets.Just last month, property prices in the two cities were tipped to fall 15-20 per cent in 2019, according to LF Economics’ founder Lindsay David’s base case, but he believes there’s a slight chance the fall could accelerate to 50 per cent over the longer term. The economist warns this could be a “property bloodbath”.And Frydenberg is concerned that small business owners that took out a loan against the value of their home may be badly affected by the price collapse.