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Dublin worst hit as house prices plunged by 42pc

Asking prices for residential properties throughout the country fell by 19pc in 2009.

The drop in price is now 30pc lower than asking levels in the peak of 2007, according to leading property website Daft.

The average asking price for residential properties by the end of last year was €242,000, which is a €107,000 drop in comparison with 2007.

In Dublin, asking prices have dropped by up to 42pc since then.


Economist Ronan Lyons of Daft said that Dublin saw the largest drop in house prices for the year, but "the total stock for sale in the capital fell by almost 20pc over the year".

Daft's report stated that asking prices in Dublin city centre for one-bed apartments is currently €201,000, and €216,000 for two-bedroom apartments.

But Keith Lowe, chief executive officer of Douglas Newman Good (DNG), said that entry-level prices in Dublin are, in fact, under the €200,000 mark for a two-bedroom apartment.

He explained that in late 2009, DNG sold a cottage-style house off Cork Street, Dublin 8, for €80,000.

Earlier this week, Sherry FitzGerald said that house prices had dropped 20.3pc nationally in 2009, and in Dublin had fallen in real terms by 45.7pc since 2006.

In addition to the drop in pricing, there was also a 70pc slump in the number of new homes registered in the month of December in Ireland last year, according to home guarantee scheme Homebond.

Homebond stated that there were just 149 homes registered last month, in comparison to 501 homes in December 2008.

Just 29 new homes were registered in Dublin in the month, and only eight in Cork.

There were no new homes registered in eight counties.

The Homebond figures are seen as an indicator of future housing activity.


But estate agents have stated that the early indicators from the New Year are positive, with a number of first-time buyers looking at houses for sale.

And both DNG and Sherry Fitzgerald have reported that they have been very busy so far.

Paul Murgatroyd, of MyHome, said although many first-time buyers have received loan approvals and are ready to buy, their reservations fall on the general economic situation and sense of job security.