Average asking prices for property in Ireland fell by 18% in 2011 – as large as the decline seen in 2009 – claims property website Daft.ie.
The firm, which claims to be Ireland’s biggest property site, says asking prices dropped by 7.7% in the three months to December, the sharpest quarterly price fall to date.
It takes the average asking price to just over €175,000 – 52% below its 2007 peak of €366,000. Dublin saw a drop in Q4 2011 of 8.9%.
Ronan Lyons, an economist at Daft.ie, says: “Looking ahead to 2012, confidence and finance are central.
“It is vital to remember that recovery in the property market does not mean an increase in prices, but an increase in transactions.
“This is ultimately down to the banks, who will not resume lending until the government’s stress tests stop punishing them for doing so.”
A report published last week by another Irish property website, MyHome.ie, puts the decline in Irish asking prices for 2011 slightly lower, at 13%.
It says that its data shows asking prices declined by 2.4% in the three months to December.
They are now down by 43% compared to their peak, while Dublin prices have fallen by 50%.
Meanwhile, research from Nationwide Building Society shows that UK house prices fell by 0.2% in December but increased by 1% throughout 2011.
The price of a typical UK home is now £163,822, according to the building society.
London saw the strongest growth in 2011, with prices rising by 5.5% over the course of the year. Prices in the capital are now just 1.6% below their all-time high, while in the UK as a whole prices are still 10% below their peak.