A public relations manager who issued a statement stating that property prices were set to drop 40 percent has been fired by realtor Sotheby's, according to Wednesday's Business Report.

Maurice Levin, who released the internal memorandum, said on Tuesday that he was fired by Brent Townes, chief executive of Sotheby's International Realty because chairman Lew Geffen had not authorised the memo's release to the media.

"What disturbs me as a media practitioner, from an ethics and integrity angle, is that Mr Geffen stands by every word he wrote in the June 2008 internal memorandum to his franchise holders, but not to the media," the newspaper quoted Levin as saying.

Levin said Townes would have renewed his contract if the story had not broken.

Saul Geffen, chief executive of mortgage originator ooba and Lew Geffen's son, earlier this week described his father's claims as 'alarmist', adding that many of his forecasts were 'unsubstantiated facts' and had caused home owners undue concern.

Reports based on the memorandum, predicting the drop of 40 percent by the end of 2008, from last year's highs, drew criticism from many members of the residential property sector.

Sapa