Property prices on slide again


Residential property prices across the country fell by 14.4 per cent in the 12 months to the end of June, according to the latest data from the Central Statistics Office (CSO).

The fall more than reversed the 0.2 per cent monthly rise recorded in May, which was the first such increase in nearly five years.

The fall in prices in June brought the total decline since the peak in September 2007 to almost 50 per cent.

Compared to June 2011, national property prices were down by 14.4 per cent.

According to the Residential Property Price Index, which is compiled by the CSO using mortgage drawdown data supplied by banks, property prices in Dublin fell 1 per cent last month and were 16.4 per cent lower than a year ago.

Dublin house prices decreased by 0.8 per cent in the month and by 16.4 per cent on an annual basis, while Dublin apartment prices were 17.9 per cent on the same month in 2011.

Property prices in the capital are now 57 per cent lower than their 2007 peak.

The figures showed Dublin house prices are 56 per cent below their highest level, recorded in early 2007, while apartments are 62 per cent below their peak.

The price of residential properties in the rest of the country, excluding Dublin, fell by 1 per cent in June compared with a decline of 1.9 per cent in June 2011. Overall, prices in the rest of the country were down 13.5 per cent in the year to the end of June.

The fall in property prices outside the capital has been marginally less pronounced, falling 47 per cent since 2007.

In a statement, stockbroking firm Davy's said the report confirmed that suggestions of a turnaround in the property market had been premature.

They also noted that the June drop more reflects weak bank lending, high unemployment and oversupply of homes. The firm believes that there is no sign of a turning point in the Dublin market and that overall prices will come down further.

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