The real-estate market is set to cool off in the coming months as Brexit takes its toll.
The Brexit vote, which saw Britain vote to leave the European Union, has sent shockwaves through the property market.
A strong start to 2017 saw the value of property in London rise by nearly $6bn, according to Savills.
That has since been reversed as Brexit-related house prices fall.
Despite the slowdown, the average price of a home has risen by 1.5 per cent over the past year, according the Ritz-Carlton Property Index.
In contrast, the price of houses in Sydney is now rising by less than 0.5per cent a year, but this may not last.
Australia’s housing market is also showing signs of resilience.
On Thursday, the median price of property on the Gold Coast rose by nearly 5 per cent in May compared to the same month last year.
While many properties remain undervalued, the market has seen some strong growth.
For example, a property in the city of Adelaide sold for $3.5 million in May.
And in Melbourne, a four-bedroom house in the CBD was sold for nearly $7 million in June.
But it is clear that there is room for more to rise.
Property market is expected to cool as Brexit hits UK property article The UK’s Brexit vote is likely to have a major impact on the country’s housing markets.
As the UK leaves the EU, the cost of property has been sharply raised.
Since June 2016, the Government has slashed stamp duty by 15 per cent, while the tax on buying houses has been reduced by 40 per cent.
At the same time, stamp duty has been slashed by another 30 per cent for properties that were bought before the Brexit vote.
However, that does not necessarily mean property prices will go up.
There is still a strong amount of supply in the market.
According to Savill, Australia’s property market is currently on the high side, but could soon cool off.
“The current trend of prices to fall is likely, although the impact of Brexit on the property sector will be felt for several years,” the research firm said.
Savills has also warned that it could take a few years for the current trend to fade.
If that happens, then the real estate industry will likely need to start planning for a stronger future, it said.