Residential property prices in Ireland fall by 14.3% in the year to September

Residential property prices in Ireland continued to collapse last month with the average home now worth almost half of its peak value.

The latest figures from the Central Statistics Office show that nationally prices fell 14.3% in the 12 months to the end of September.

This compares with an annual rate of decline of 13.9% in August and a decline of 11.1% recorded in the twelve months to September 2010.

Residential property prices fell by 1.5% in the month of September. This compares with a decline of 1.6% recorded in August and a decline of 1% in September of last year.
 
The average residential property is valued at €175,165, down from a peak of €314,000 and a loss of almost €140,000 in value over the past four years. This means house and apartment price falls in this country have been among the most severe in the world.

In Dublin residential property prices fell by 2.1% in September and were 15.6% lower than a year ago. Dublin house prices decreased by 1.7% in the month and were 15.3% lower compared to a year earlier. Dublin apartment prices fell by 4.8% in the month of September and were 19.3% lower when compared with the same month of 2010.
 
The price of residential properties in the Rest of Ireland, excluding Dublin, fell by 1% in September. A similar rate of decline was recorded in September last year. Prices were 13.2% lower than in September 2010. House prices in Dublin are now 49% lower than at their highest level in early 2007.

Apartments in Dublin have suffered the most, now 59% lower than they were in February 2007. Overall residential property prices in Dublin are 52% lower than at their highest level in February 2007.
The fall in the price of residential properties in the Rest of Ireland is somewhat lower at 40%. Overall, the national index is 44% lower than its highest level in 2007.
 
A weak labour market and the continuing lack of available bank credit mean that the property market is unlikely to see a recovery for some time.

Most economists expect prices to continue their rapid decline this year, before falling at a more modest pace next year, and predict prices stabilising in 2013.