The rate of growth in house prices fell to 0.6 per cent last month in a fifth consecutive monthly drop, a survey shows today.
But the Permanent TSB/ESRI House Price index for October says that due to particularly strong growth in the first half of the year, the rate of growth at 11.6 per cent is higher than expected.
'For sale' signs on the railings of apartments on gardiner street. Photograph: Alan Betson
It compares with a 9.3 per cent growth rate for the full year 2005 and 6.8 per cent for the same period last year.
House prices in Dublin and outside Dublin both grew by 0.9 per cent and 0.2 per cent respectively in October.
The year-on-year growth rates for house prices declined nationally and in all market sectors in October - something that has not happened since December 2004, the report said.
On average, the price paid for a house in October was €309,963, more than €32,000 higher than that recorded for December 2005 (€277,852).
House prices grew at a rate of 0.7 per cent in September and 1 per cent, 1.1 per cent, 1.2 per cent and 1.6 per cent in August, July, June and May respectively.
In the 12 months from October 2005 to October 2006, the growth in national prices was 14.2 per cent. This is down from a 15 per cent growth rate in the year to September.
Niall O'Grady, head of marketing at Permanent TSB said: "It's important to note that while the rate of increase continues to moderate, the fact is that national house prices continued to rise in October - highlighting the continued strength of the housing market.
"Having said that, its clear that we're moving into a new stage in the price cycle. The positive thing is that so far it appears that this new phase will be characterised as a soft rather than a hard landing."