Figures compiled by Permanent TSB and the ESRI show that house prices across the country rose by 8.6% last year, compared with 13.8% in 2003.
Growth slowed sharply towards the end of the year - with prices up just 0.2% in December, the lowest monthly rise this year. Prices in the final three months climbed by just 0.8%, compared with 3.9% in the same period of 2003.
The average national house price in December was €254,215.
The report shows wide variations across the country last year, with price growth of 16% in County Cork and Donegal, against just 5% in Longford.
Permanent TSB's Niall O'Grady said house price growth moderated to more sustainable levels last year. He predicted growth of 5-7% for 2005.
A breakdown showed that prices in Dublin rose by 8.9% in 2004, with growth of 8% elsewhere. The figures for 2003 were 12.7% and 13% respectively.
House prices for first-time buyers and second-time buyers increased by 7.9% and 9% respectively in 2004, again sharply lower than in 2003. New house prices were up 12.4%, rising at a faster pace than 2003's 10.8%, while second-hand prices were 8.7% higher.
