The battle of the estate agents is going on at an apartment block near you. Competitive price dropping is the latest tactic by agents to lure buyers away from other apartments in a development or to drum up interest in apartments that have languished on the market. It's a purchaser's market with an abundance of second-hand apartments to peruse at leisure, which means that drastic measures are now being employed to close a deal. The Warehouse development on Clanbrassil Street, Dublin 8, is typical of this trend where Lisney is handling the sale of an apartment which it has reduced in price from £300,000 (€380,920) to £280,000 (€355,530). It has since reported "increased activity". Sherry FitzGerald, which is the agent for another apartment in the development, has been forced to follow suit. Number 94, The Wintergarden on Pearse Street, Dublin 2, on sale through Sherry FitzGerald, was on the market for over a month before the asking price was reduced from £240,000 (€304,740) to £225,000 (€285,690). The agency has reported an upsurge of interest in the apartment and the price drop is bound to set the pace for other units that come up for sale in the development.

"There is loads to choose from," says Eustelle Fleming of Sherry FitzGerald, "buyers might do a little tour of five or six apartments in an afternoon." She has noticed that apartments pitched at under £180,000 (€228,550) are selling better than those at the upper end of the market - although some well-located blocks like the IFSC or those in Temple Bar continue to command premium prices. The agency has reduced the price of an apartment in Cowper Downs from £165,000 (€209,510)to £157,500 (€199,984).

Those blocks that were "thrown up" - often three and four-storey developments with no lifts - are slower to sell, says Fleming. With the investor largely out of the market following Bacon 3, the majority of buyers are owner-occupiers seeking quality accommodation and superior design. Developments with a high proportion of rented units are also less popular than owner-occupier dominated schemes.

The "hard-nosed" investor is a scarce commodity. "Most investors these days are parents buying a place for their children at college or helping out their children who are moving home from abroad," says Fleming.

Business people looking for a base in the city tend to opt for the plusher apartments in areas like Donnybrook, Ballsbridge and the Leeson Street area.

In some cases, a vendor can set the price reduction domino effect in motion in a development if they are in a hurry to get shut of a property.

"It happens when people don't give themselves enough time to sell," says Johnny Lappin of Douglas Newman Good. "It is now taking six to seven weeks to sell an apartment, whereas before it was taking two weeks. The vendor might be under pressure with a bridging loan or they might have spotted something they want to buy and need to move quickly so they are prepared to take less."

He has noticed that Section 23 apartments priced under £200,000 (€253,950) are selling well, while those over that figure are taking longer to offload given the high stamp duty rates.

In certain areas, apartments are "still flying" says Lappin, like Dublin 8, which is shortly to be marketed as the "Digital Hub". The area is the focus of a Government and Dublin Corporation initiative, and it will undergo huge transformation in the coming years as it becomes the centre of an international digital enterprise area.

"The prices are still relatively reasonable there and if first-time buyers can afford to purchase there now, it will stand to them in a few years time. Ringsend in Dublin 4 is another up and coming area."

Don Kavanagh of Wyse estate agents says that his company has dropped the price of a one-bedroom apartment at Custom Hall in Lr Gardiner Street in Dublin 1 from £145,000 (€184,112) to £142,500 (€180,938). There are currently a number of other one-bedroom apartments for sale there through different agents ranging in price from £145,000 (€184,110) to £160,000 (€203,160). Wyse has also dropped the price of an apartment without a parking space on Arran Quay in Dublin 7 from £140,000 (€177,760) to £137,500 (€174,589).

Lack of parking is not necessarily a deterrent to prospective buyers, according to Kavanagh. "They are going up in price at such a rate that many can't afford them and if they work in town, they probably won't want or need one. It can be a problem if the scheme has no parking and is outside the city centre."

There has been a trend towards commuters abandoning their properties on the outskirts in favour of a hassle-free city centre existence.

"I've seen cases where people from suburban areas like Swords are getting tired of having to battle the traffic every day," says Don Kavanagh, "and they are renting their houses and buying apartments in the city centre."

emorgan@irish-times.ie