Residential property prices fell by 9.9% year-on-year, the steepest decline since the start of data collection in 2000, the federal statistics office said.
Prices fell by 1.5% on the quarter, with steeper declines in larger cities than in more sparsely populated areas.
In cities such as Berlin, Hamburg and Munich, apartment prices fell by 9.8% and single and two-family house prices dropped by 12.6% on the year.
Building permits for apartments in Germany declined 31.5% in July from a year earlier, the statistics office disclosed on Monday, as construction prices rose by almost 9% on the year.
German housing industry association GdW on Friday sounded the alarm over the situation calling for government support for construction companies.
Persons:
GdW, Riham Alkousaa, Klaus Lauer, Kirsti Knolle, Sharon Singleton
Organizations:
Reuters, Thomson
Locations:
Berlin, Hamburg, Munich, Germany