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Republic of Ireland's drop in house prices is worst in world

House prices in the Republic of Ireland have deteriorated further than any other country in the world, a new survey has revealed.

The Global Property Guide (GPG) yesterday said Irish prices were down by 14.94pc over the year to the end of September. This has placed Ireland at the bottom of a house price league for 35 countries.

This comes in the wake of a report by credit rating agency Standard & Poors, which predicted in June that house prices in Ireland would fall by another 10pc this year before reaching the bottom in 2011.

It said high unemployment and economic weakness had meant that consumers would remain cautious this year, while an oversupply of houses had also contributed to price falls.

The GPG survey uses house price changes after inflation to give the most realistic picture of the market -- rather than the upbeat nominal figures preferred by real estate agents.

"Ireland had the worst annual price decline among countries in the survey, with house prices down 14.94pc over the year to quarter three 2010," the report said.

"Irish house prices have been falling for the past three years, and the declines show no sign of ending."

The report revealed that 17 out of 35 countries recorded increases in house prices over the year to the end of September.

Kersten Mehl of the Irish Auctioneers and Values Association said the decrease in Irish prices was due to lack of credit in the economy.

Belfast Telegraph