Dublin's Property Prices Felt Biggest Monthly Drop In A Year

It was a sharp decline for residential property prices in Dublin for the year, as recorder last month at 1.3%, Irish Times reports.

However, data from the Central Statistic Office revealed that figures remained up on the same period last year despite the declines.

In November, prices in houses and apartments fell 0.5% on a national scale, which is the first recorded drop since the month of February. It came just after the 1.6% increase recorded in October.

The capital has also witnessed a sharp decline in November which is the second largest monthly fall in three years at 1.3%.

Last month, there was drop in prices nationally and in Dublin, but residential property prices had increased 6.5% on a national scale for the past 12 months and Dublin was 3.3% higher in prices compared to last year's.

This however was the lowest price inflation in Dublin since May 2013 for on annual rate.

The fall in inflation is highly attributed to Central Bank's new lending restrictions that puts a limit of 80% in allowable mortgage to be lent, but exempting 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.

Central's Bank is believed to have greatly impacted capital where affordability is more stretched says economist Conall Mac Coille.

" 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.

Considering the latest declines, Dublin's house prices still is at 34% below its boom time high in 2007, while apartments are 41% below their record in February 2007. Residential properties in Ireland, except for Dublin, stay at 36.2% below their pre-cash high.