Residential property prices fell at their sharpest rate in nearly a year last month with the decline in Dublin put at 1.3 per cent.
Despite the declines, the latest figures from the Central Statistics Office (CSO) show prices remain up on the same period last year.
Nationally, prices of both houses and apartments fell 0.5 per cent in November, the first recorded decline since February. It also comes on the back of a 1.6 per cent increase recorded in October.
The decline in the capital was even sharper with prices down by 1.3 per cent in November, the second largest monthly fall in three years.
While prices nationally and in Dublin fell last month, residential property prices nationally are up 6.5 per cent over the last 12 months while prices in Dublin are 3.3 per cent higher than a year ago.
However, this is the lowest level of annual house price inflation recorded in Dublin since May 2013.
The steady fall in inflation has been linked to the Central Bank’s new lending restrictions, which limit banks from lending any more than 80 per cent of a mortgage, except in the case of first time buyers.
“It would appear that the macro prudential rules are continuing to have a dampening impact on the Irish housing market,” Goodbody economist Juliet Tennant said.
“However, the expiration of the Capital Gains Tax waiver at the end of 2014 also makes annual comparisons difficult. It will take some time for these distortions to wash through and it is likely that price growth will slow further before picking up again,” Ms Tennant said.
Davy economist Conall Mac Coille said the impact of the Central Bank’s rules has been felt “most sharply” in the capital where affordability is most stretched.
“ The recovery outside the capital began almost one year later, so that affordability is less stretched, and there is probably more room for catch-up,” he said.
The CSO figures shows Dublin house prices fell by 1.2 per cent in November, while apartment prices were 6.1 per cent higher than 12 months ago. However, the CSO cautioned the sub-indices for apartments were based on a low level of transaction therefore suffer from greater volatility.
Properties prices in the rest of Ireland, excluding Dublin, rose by 0.2 per cent in November and were 9.6 per cent up on last year.
Even with the latest declines, house prices in Dublin remain nearly 34 per cent lower than their boom time high, recorded in early 2007, while apartments, in the city are 41 per cent lower than they were in February 2007.
The price of residential properties in the rest of Ireland, excluding Dublin, is 36.2 per cent lower than the pre-crash high.
