Residential property prices down 3 per cent this year

Residential property prices fell again last month but the rate of decline has slowed considerably over the past year.

Figures from the Central Statistics Office show that prices fell by 0.5 per cent in March, bringing to 2.6 per cent the overall decrease in prices in the first three months of this year.

The figures show that residential property prices have now fallen for four consecutive months, the longest negative streak the market has experienced for more than a year, but the speed at which they are declining has slowed.

The CSO said prices were down by 3 per cent in the 12 months to March, compared to a 16.3 per cent decline in the same period a year earlier.

The recent decline has been attributed to a slowdown in activity following the end of the mortgage interst relief scheme in December.

Despite a sharper than average fall of 0.8 per cent last month, property prices in Dublin rose by 1.4 per cent in the 12 months to March. The value of residences outside the capital fell by 5.8 per cent in the same period, with the decline last month at 0.3 per cent.

In March, house prices in Dublin fell by 0.3 per cent, while the price of apartments fell 7.2 per cent lower.

The CSO cautioned that data on apartment prices were volatile given the limited number of transactions. Apartment prices in Dublin were said to have risen by 5.8 per cent a month earlier.

The CSO said house prices in Dublin were 55 per cent lower now than at their peak in early 2007, with apartments valued at 62 per cent less than in March 2007.

The fall in values outside Dublin has been slightly less severe, with residential prices 49 per cent lower than they were this time six years ago.