According to the latest report from property website daft.ie asking prices in Howth — home to broadcaster Gay Byrne and U2 drummer Larry Mullen — have fallen by 17% in the last six months, compared to the previous six months.
A drop of 12.6% was seen in Rathgar, Rathmines and Ranelagh.
The reason for such a fall in asking prices is because of the uncertainly over stamp duty, according to director of Daft, Brian Fallon.
“Houses in areas like Howth can fetch over €1 million and people are holding out in these areas until they know what is going to happen with stamp duty as they could be paying anything over €100,000 in stamp duty.
“Sellers are being forced to lower their asking prices in order to make the properties move,” he said.
The report also shows that the year-on-year growth in asking prices has been slowing consistently over the last 12 months and stood at 2.1% in April. This compares with asking price inflation of 13.8% the previous April.
Mr Fallon said: “House price inflation has been falling for close to a year now. The primary reason for this has been the multiple interest rate hikes from the European Central Bank.”
Economist at Davy, Rossa White said: “The figures from Daft show that the housing market overheated in mid-2006. Since then, Dublin has seen the sharpest drop in asking prices.
“This implies that sellers in the Dublin area became greedier than elsewhere during the buoyant first half of 2006. Asking prices were quickly pared from an unrealistic level.”
This survey does not contradict the PTSB/ESRI house price index which said prices in Dublin have held up better than in the rest of the country, said Mr Fallon.
“The daft.ie survey is a picture of how the market is at this moment whereas the PTSB/ESRI survey shows the market three months ago.”