New house completions dropped by almost a third during the first six months of 2008, which has dramatically affected the price tags placed on new developments.

Completions fell by around 30% compared to last year, with 5.5% being wiped off the price of new builds.

The average new home in Ireland now costs less than €313,678.

Second hand homes have suffered a greater cut in value, with 7.8% dropping off average costs. The average price of a second-hand house is now less than €356,638.

Dublin experienced some of the highest falls in new build values. The average cost of a home in the capital now sits at €390,544, after toppling by 8.5%.

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Within 12 months 10.3% was slashed from the price of second hand homes in Dublin, bringing the average cost to €455,142.

In Cork, a new house now costs 5.2% less than it did the previous year.

Second-hand house prices in Cork fell by 3.6%.

According to figures published by the Environment Department, 27,736 units were completed nationwide in the first half of 2008 compared to 38,978 in corresponding period in 2007 - a decrease of 28.8%.

Since then, data has pointed to a further slowdown, with just 40,000 units estimated to be completed up to the end of last month.

Over 56,000 houses were built over the same period in 2007.

House starts have also dropped greatly this year, with figures being down more than half in June.

House loan approvals fell by 20% during the same period - usually the market's busiest time.

However, figures have suggested social housing projects have escalated.

A total of 1,706 units built under the Part V Social and Affordable Housing Provision were provided in the first half of this year - up 83% on 2007 figures.

(PR/JM)