Source: CSO

In the year to December 2011, Irish house prices at a national level, fell by 16.7%. This compares with an annual rate of decline of 15.6% in November and a decline of 10.5% recorded in the twelve months to December 2010. Residential property prices in Dublin are 55% lower than at their highest level in February 2007.

The Central Statistics Office (CSO) said residential property prices fell by 1.7% in the month of December. This compares with a decline of 1.5% recorded in November and a decline of 0.5% in December of last year.

In Dublin residential property prices fell by 2.4% in December and were 19.3%lower than a year ago. Dublin house prices decreased by 3.0% in the month and were 19.9% lower compared to a year earlier. Dublin apartment prices were15.6% lower when compared with the same month of 2010.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) fell by 1.1% in December compared with a decline of 0.5% in the same month of last year. Prices were 15.1% lower than in December 2010.

Overall Decline

House prices in Dublin are 54% lower than at their highest level in early 2007. Apartments in Dublin are 58% lower than they were in February 2007. Residential property prices in Dublin are 55% 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 43%.

Overall, the national index is 47% lower than its highest level in 2007.

Conall Mac Coille, chief economist at Davy, commented:

Prices continue to decline in December

• Residential property prices fell by 1.7% on the month in December following a 1.5% decline in November;
• This means the annual rate of decline in property prices in December was 16.7%, a sharper pace than the 15.6% fall in the year to November;
• House prices fell by 1.6% in December, down 16.6% on the year;
• Apartment prices declined by 0.2% in December, down 17.3% on the year.

Price falls sharper in Dublin

• Residential property prices in Dublin fell by 2.4%, down 19.3% on the year;
• House prices declined by 3.0% in Dublin, down 19.9% on the year;
• Apartment prices in Dublin rose for the second consecutive month. They increased by 1.3% following a 4.7% rise in November but remain 15.6% down on the year.

Peak-to-trough decline now rising close to 50%

• The declines in December mean that since their peak in September 2007, residential property prices have fallen by 47.2% and by 55% in Dublin.

Price falls set to continue in 2012

• Today's data show no let-up in the pace of house price falls. With low transactions, constrained mortgage lending and an uncertain economic environment, house prices are likely to continue falling in 2012.

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