House prices in Ireland have continued their downward spiral with the average residential property now worth just €175,000, 44% below the peak of €314,000 recorded in 2007, according to data from the Central Statistics Office.

In the year to September 2011, residential property prices fell 14.3% nationally, this compares to a fall of 11.1% recorded in the 12 months to September 2010. In the month of September 2011 itself prices fell 1.5% after already having falling 1.6% the month previously.

Dublin residential property prices are now 52% below their peak of February 2007, having fallen 2.1% in September 2011 and 15.6% compared to a year ago. House prices have fallen 49% since their peak after a 1.7% decrease during September and 15.3% annually, whilst apartment prices fell the sharpest by 4.8% to go 59% down on the high of 2007 and 19.3% below the same month in 2010.

Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin, said: “Given weak labour market conditions and the continuing lack of available bank credit, it is hard to be optimistic on the prospects for the property market in the immediate future. The level of any rise over the next few years is only likely to be in the low single digits.”