Residential property prices fell at their sharpest rate in three years last month with the decline in Dublin put at just under 2 per cent, according to new figures.

Despite the dramatic declines, property prices remain significantly up on the same period last year, according to data from the Central Statistics Office (CSO).

At a national level, prices of both houses and apartments fell 1.4 per cent last month. This is the largest fall observed in a single month since February 2012.

The decline in the capital was even sharper and prices in Dublin fell by 1.9 per cent in January, the biggest monthly fall in three years.

While prices nationally and in Dublin fell last month, residential property prices nationally are up 15.5 per cent over the last 12 months while prices in Dublin are still 21.6 per cent higher than 12 months ago.

Dublin house prices fell by 2.1 per cent in January while apartment prices increased by 0.9 per cent.

However, the apartment price increases are based on a low volume of observed transactions and consequently suffer from greater volatility than in other sectors.

At national level residential property prices are now 38.5 per cent lower than their peak level in 2007.

Dublin house prices remain 36.9 per cent lower than their peak and Dublin apartment prices are 44.4 per cent lower than their high point.

Outside of Dublin residential property prices are 41.9 per cent lower than their highest level in 2007.