House prices in Dublin dropped by 10% on average last year, according to a review by the Irish Auctioneers and Valuers Institute.
According to the IAVI's assessment of 2007, Dublin was the most serious casualty of falling house prices last year, but prices paid for second-hand apartments fell by as much as 17%.
It says 40,000 Dublin apartments are vacant, causing concern that prices will continue to fall more in that sector.
The IAVI says property prices began to fall last February and it blames media comment on the economy for a certain amount of lack of confidence in the market.
It also blames uncertainty about stamp duty, excessive price expectations, and higher interest rates.
Last year residential sites in Munster fell by between 9-11%, sites in Connacht fell by 6-8% and in Dublin by between 16-19%.
The IAVI says that before growth again in 2009, this year will see year house prices drop by a further 3% nationwide, and 4% in Dublin.
