Growth in the price of residential property has more than halved in the past year, falling from 14.8% in January 2022 to 6.1% in January 2023, Central Statistics Office (CSO) figures show.

On a monthly basis, average residential property price growth in Dublin was negative for the fourth successive month in January 2023.

Prices started falling on a monthly basis in the capital last September. The monthly decline of 1.1% in January was the sharpest decline since the market started to retreat last autumn.

Annual inflation in house prices has slowed for 10 consecutive months, and average prices across the country declined 0.6% in January 2023 from December 2022, declining on a monthly basis for the first time since May 2020.

In Dublin, residential property prices rose 4.3% in the year to January 2023, with house prices up 4.3% and apartment prices rising 4%. Outside the capital prices overall rose 7.4% year-on-year, or 7.6% for houses and 4.8% for apartments.

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The highest annual rate of house price growth in Dublin was in south Dublin at 9.8% while Dublin city saw the slowest growth at 1.3%.

Excluding Dublin, the border region (Cavan, Donegal, Leitrim, Monaghan, and Sligo) witnessed the quickest growth at 10.1% in the year to January 2023, and the mid-west (Clare, Limerick, Tipperary) was slowest (6.7%).

Trevor Grant, chairman of the Association of Irish Mortgage Advisors. commented: "House price growth outside the capital continues to outpace that of Dublin which is worrying because many people are now being outpriced of the areas which they had turned to after Dublin house prices climbed beyond their reach.”

There were 3,675 dwelling purchases filed with the Revenue in January 2023, an increase of 4.4% from January 2022.

The media price paid was €305,000, falling to €151,500 in Longford and rising to €630,000 in Dún Laoghaire-Rathdown.

The most expensive Eircode area over the 12 months to January 2023 was A94 (Blackrock) with a median price of €755,000, while F35 (Ballyhaunis, Co Mayo) was the least expensive at €127,500.

“While interest rate increases will undoubtedly impact the market, there is still a cohort of buyer with sufficient incomes to enable them to qualify and afford the mortgage they have applied for," Grant added.

"Despite interest rate increases, it is still cheaper for many to buy than rent.”

(Pic: Getty Images)