Asking prices for residential property fell 4.2% in the first three months of 2009, according to the latest report by property website Daft.ie.

This latest drop in prices marks the eighth consecutive quarter that prices have fallen. The national average asking price now stands at €281,000, a fall of almost €63,000 from the peak in mid 2007.

Drops in asking prices varied around the country, with Dublin city centre hardest hit - prices fell by 11% in the first three months of 2009. In Sligo and Waterford city, prices fell by 10.5% and 9.5% respectively, while in Cork city and Limerick city, prices fell by about 5%. In the past three months the average nationwide reduction in asking prices was €12,500.

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Commenting on the report findings, Ronan Lyons, Economist at Daft.ie said: "Sellers discounted their prices by a further €12,500 on average in the first three months of 2009. People selling properties in Dublin cut their prices by over €20,000, indicating that a larger adjustment in property prices is underway in the capital than elsewhere.

"While oversupply remains significant, with over 60,000 homes for sale around the country, one encouraging sign is that the stock of property available for sale has fallen about 5% since its peak in October 2008."

(CD/BMcC)