Electronic conveyancing business PEXA said rising interest rates and a slowing Australian economy could further cut property transaction volumes, as it reported a near-60 per cent slump in net profit.

In what it called “challenging” market conditions, the company said transactions fell 9 per cent by volume in the six months to December from a year earlier, cutting revenue at its core PEXA Exchange business by 7 per cent to $135.1 million.