A new survey has suggested asking prices have fallen in both Dublin and nationally in the third quarter of the year.
The property report from MyHome.ie shows asking prices fell by 2.5% in Dublin and 0.8% nationally.
It says the annual rate of inflation for newly-listed properties nationally is now 5.9% while it is just 2.2% in Dublin - the slowest pace of increase in two years.
MyHome says this means the average asking price for new sales nationally is €268,000 - down €2,000 from the last quarter - while the price in Dublin is €375,000, down €9,000.
It adds that newly-listed properties are seen as the most reliable indicator of future price movements.
Source: MyHome.ie
The data indicates that the slowdown is still concentrated in the most expensive property types and locations.
For example, the median asking price for one-bedroom apartments was up 11% in the year to Q3 2018 to €200,000.
In contrast, prices for four-bedroom detached homes were flat on the year at €650,000
The report also highlights a pick-up in homebuilding activity.
In the 12 months to June 2018 completions equalled 16,300 - well ahead of the 14,446 recorded in 2017.
In total, planning permissions for 26,750 units have been granted in the 12 months to June.
Source: MyHome.ie
The author of the report is chief economist at Davy, Conall MacCoille: "The double-digit price inflation we experienced earlier this year was simply not sustainable and the slowdown we predicted earlier this year has now materialised.
"While the magnitude of the drop this quarter may be surprising, some of the quarterly decline may be seasonal, reflecting typically weaker prices at the end of a busy summer trading season."
He adds: "Some also may be temporary as it was always likely that house price inflation in Dublin would slow following the tightening of the Central Bank mortgage lending rules.
"These rules were aimed at preventing buyers reacting to stretched affordability by over borrowing, and they have been successful in this regard."
However demand remains strong.
"With jobs and wages growth both exceeding 3%, underlying demand remains exceptionally strong and we expect inflation to equal 8% by December.
"Brexit of course remains something of a wild card but the key assumption here is that the UK will move to the transition period in March next year, maintaining the status-quo by effectively remaining inside the single market".
