Taoiseach Leo Varadkar has criticised comments from Sinn Féin leader Mary Lou McDonald that average house prices should fall to €300,000.
He said that while he agreed that houses should be affordable, he questioned how Sinn Féin would bring down prices.
He also said that such a move would have significant consequences.
"It would put a lot of people into negative equity, particularly the vast majority of people who bought their first home in the last couple of years," he said.
"And it would also send a message to the banks – because if banks and lenders hear that the potential next Taoiseach wants house prices to fall by that much, they will think twice about issuing mortgages to people against assets that are going to be worth less."
Mr Varadkar said there was a transition to be made from opposition to Government.
"I just think Mary Lou [McDonald] needs to think more about the things she says about investment and tax, about asset prices, house prices, how that can actually hurt people," he added.
