Year-on-year growth in house prices slowed for the eighth consecutive month, the latest review of house prices shows.
Growth fell to 12.8 per cent in the year to August - the lowest figure recorded by the Irish Permanent house price index since it started in 1998 - from 14.1 per cent in the 12 months to July.
"It is now clear that the overall rate of house price growth is going to be significantly lower this year than last," said Mr Niall O'Grady, head of marketing at Irish Permanent.
Prices nationally rose by 0.9 per cent in August compared with growth of 3 per cent in August last year, according to the index - which is compiled in association with the Economic and Social Research Institute (ESRI).
In the year to date, house prices were up by 6.8 per cent, compared to a rise of 14.8 per cent in the January to August period last year.
However, Mr O'Grady said prices were still growing strongly, particularly at the lower end of the market.
"Maintaining adequate supply of houses for the first-time buyers will be crucial over coming months," he said.
The index confirms the emergence of differing trends at the higher and lower ends of the market in the capital. The average price per square foot for Dublin houses in the £300,000-plus (€380,921-plus) category has fallen by 4.5 per cent so far this year. By contrast, the average price per square foot for houses below this threshold has increased by 7.8 per cent.
New houses outperformed second-hand ones, rising by 6.7 per cent in the year to date, compared to 6 per cent for the latter category.
Prices for first-time buyers were up by 7.5 per cent, while second-time buyers faced a rise of 6.6 per cent in prices in the period between January and August.
The average price paid by a first-time buyer was £129,840, compared to £113,772 in August 2000.
Overall, Dublin house prices rose by 8.3 per cent in the year to date compared to 16.7 per cent last year, while houses in the rest of the State recorded a 7.4 per cent rise, down from 14.8 per cent. The average price paid for a Dublin home was £192,242 while the price outside of Dublin was £128,976.
