Irish construction growth is expected to slow to 5 per cent this year, down from 10 per cent last year, with a severe decline in housing starts particularly in Galway and Limerick.

Construction prices continued to rise in the first quarter of 2001 but dropped significantly in the second quarter, particularly outside the Dublin region.

Quantity surveyor Petterson, Kempster and Shortall (PKS) said it has revised its original price rise projections for 2001 down to 6-12 per cent growth from 10-15 per cent.

PKS said housing statistics fell by 20 per cent in the first five months of 2001 and the collapse was even more acute in Galway and Limerick where housing starts dropped by 29 per cent and 41 per cent respectively.