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Further 5pc fall sees city house price now €272k

ASKING prices for Dublin houses dropped by a further 5pc in the second half of the year, as the length of time it takes to sell a property has reduced.

Prices are now 40pc or €185,000 on average below peak levels in the capital.

The national average asking price for property now stands at €220,000 and the average asking price in Dublin is now €272,000, down from a peak of €457,000 in early 2007, according to property website, Daft.ie.

The figures released show that the average time to sell in Dublin is four months, which is similar to late 2008.

However, there are now around 60,000 properties on the market, up from 20,000 at the peak of the housing boom.

Nationwide, the largest falls in the country were in Donegal, Cavan and Monaghan, where asking prices fell by an average of 11pc, having been static for the past six months.

But it was not all negative news for the property market.

The website's economist, Ronan Lyons said that almost half the number of properties listed in the capital in January are now sale agreed or sold.

"While falls in asking prices are slower than last year, the market is still in adjustment and the total stock for sale, particularly outside the main cities, remains high," he said. "Nonetheless, evidence from Dublin in particular shows that properties are selling."

Around the country, about 5,000 properties were listed for sale in April. Of these, 15pc of properties have already been sold, while a further 10pc are sale agreed.

"This represents a slight slowing down, compared with the first quarter, when 20pc of properties listed in January were sold by April 1, with a further 10pc sale agreed," he added.

The report is based on an analysis of all properties posted for advertisement on Daft.ie up to June 30, including 38,000 posted in the second quarter of 2010.

Friends First economist Jim Power said that these are only marginal improvements in the market. "Having failed to anticipate the magnitude of the imminent house price collapse at the beginning of 2007, I am now far from convinced that the market is yet bottoming out," he said.

Mr Power believes average prices could fall by 12pc this year and completions could be lower than 12,000.

"Any meaningful recovery in 2011 looks unlikely," he said.