A report released yesterday by Access Economics tipped Australia was headed for a deep recession, with Queensland to be hardest hit.

The leading economic analysts said falling commodity prices would take the Sunshine State from "feast to famine" in the year ahead, resulting in rising unemployment and a reduction to the government's coffers.

Iron and coal prices could halve as export demand from China slows, placing further pressure on the resources sector, Access predicted.

And when the mines started to scale back operations, cut staffing levels and reduce production, the towns built to service the industry giants would suffer.

RP Data research analyst Cameron Kusher said the property boom in resource-driven towns had to come to an end at some stage.

"If unemployment rises in the mining sector, as it's expected to, those markets will be significantly impacted," Mr Kusher said.

"Remote areas in particular will feel it because in most cases, the only growth fundamental is the presence of a mining operation. Median prices will begin to fall."

Property markets driven by tourism would also feel the impact of the economic downturn, with traveller numbers already starting to fall, Mr Kusher predicted.

"North Queensland, the Whitsundays and even to some extent the Sunshine and Gold coasts will feel the pinch as tourism continues to slow down," he said.

"If you look at somewhere like Mackay, it's heavily reliant on both mining and tourism. They are the areas most under threat at the moment."

Mr Kusher said he believed the state's capital would hold steady during 2009, with population growth showing no signs of slowing.

"It won't be a period of exceptional price growth, but I don't think we're going to see substantial falls in the Brisbane area this year."

If Australia faces recession, the issue of unemployment will be a "wild card" for the housing market.

"The market will escape relatively unscathed if unemployment does not rise further than five or six per cent, but anywhere around eight or nine per cent will make things tight," Mr Kusher said.

"People could be forced to sell and buyers will be scarce, driving property prices down ... whether that sort of unemployment eventuates is still unclear."