Residential properties are around 30% more expensive than in 2006 despite the ongoing decline in recent years, according to new Central Bank data.

The figures announced yesterday show that property prices drop for the tenth consecutive quarter, though mildly.

Since 2008, when prices hit a record high – have decreased by 15%.

This drop appears to be accelerating in 2012, as the demand is exceptionally low due to liquidity problems in the banking system financial system, while offer is growing because of the economic difficulties that many households face.

Holiday houses seem to be under the strongest pressure, especially in Paphos, Larnaca and free Famagusta.

According to CB data, in the second quarter of 2012, house prices fell 2% compared to the first quarter of the year.

This decline was twice as that recorded in the previous quarter and the largest in the past decade, reflecting further deterioration of the business climate in the property market.

For the fifth consecutive quarter, house prices decreased 2.2% compared to those of the flats (1.6%).

The highest decrease in the second quarter of 2012 compared to the corresponding quarter of 2011, was registered in Famagusta (-8.2% in flat prices and -12.7% in house prices), while lower annual decreases were observed in Limassol (-2.6% in flat prices) and Nicosia (-4.6% in house prices).

The annual decline in house prices in Famagusta and Larnaca (11% and 8%) were the major historically.

According to the CB, in the short term, the real estate sector is expected to continue its correction registered since the third quarter of 2008, according to a survey released by the European Commission.

The climate index in the construction sector showed a slight deterioration while property sales hit a 10-year low.