June 10 (Reuters) - UBS UBSG.S has downgraded Australia's REA Group REA.AX and cut its target price by about 23%, citing near-term volume risks from the recent changes to property tax, sending shares of the property listing firm down 3% on Wednesday.

Shares of REA Group fell as much as 3.2% to A$147.72, their lowest level since May 29. The broader S&P/ASX 200 benchmark index .AXJO was last up 0.3%.

Here are some more details:

• UBS cut rating to "neutral" from "buy", factoring in the likelihood of volumes declining around 10% over 2027 and 2028, while flagging limited scope for near-term re-rating.

• The brokerage cut 12-month price target to A$165 from A$213, reflecting lower earnings estimates over 2027 and 2028.

• Considering the uncertainty surrounding property tax changes and UBS' expectations of a 3% to 5% drop in house prices over the next 12 months, the brokerage lowered its estimate of 2027 volume growth from flat to a decline of 8% with further weakening in 2028.

• Australia passed a bill this month for the government's biggest overhaul of taxes in decades, curbing tax breaks for property investors to make housing more affordable and scrapping a capital gains discount.

• However, UBS said there could be another interest rate hike in August to 4.6%, which could drive selling as mortgage pressures build.