Property prices down 7pc in city
The price of an average three-bed semi in Dublin has fallen by up to 7pc in the first indication that Central Bank lending restrictions are cooling the market.
The results of a survey reported today show that family homes in Dublin city have fallen in price by almost €20,000 in the past three months.
The selling price for a standard semi-detached house in the city has dropped by 5.02pc from €381,667 to €362,500 since the end of March.
Worst affected areas saw prices slide by 7pc, or more than 2pc a month, and at a faster rate than they have been rising in recent years.
According to the Irish Independent/Real Estate Alliance (REA) Average House Price Survey, the value of a semi-detached house nationally now stands at €186,968 - a slight fall on the first quarter of the year when the figure was €187,153.
The new lending regime has also levied a drag factor on the time it takes to sell a home, with Dublin sales times taking one third longer today compared with the start of the year.
The price slide in Dublin is being attributed exclusively to the new rules on mortgage lending introduced at the beginning of this year which requires larger deposits.
"What we are seeing on the ground is a slowdown in interest in the traditional professional properties, as couples find that raising an €80,000 deposit for a €400,000 home is simply beyond their means," REA chief Philip Farrell said.
Some areas in the higher end of the south Dublin city market have seen selling prices fall by up to €35,000 (7pc), where the average three-bed semi would sell in the €400,000 range.