Property prices rose again last month despite the introduction of new lending restrictions aimed at cooling the market.

The latest Central Statistics Office (CSO) figures for April show prices nationally rose by 0.6 per cent and are now 15.8 per cent higher than a year ago.

In Dublin, prices increased by 1 per cent last month, reflecting an annual inflation rate at 20.2 per cent.

April was the second month in a row to see prices rise since the Central Bank intervened in the market by introducing new lending restrictions in January.

The figures show Dublin house prices rose by 1 per cent in April whilst Dublin apartment prices remained the same

Outside of Dublin residential property prices rose by 0.3 per cent in April, and were up 11.4 per cent compared with April last year.

Nationally, residential property prices remain 37.8 per cent lower than their peak level in 2007.

Dublin house prices were 36.3 per cent lower than their peak, Dublin apartment prices were 42.2 per cent lower than their peak and Dublin residential property prices overall were 38.1 per cent lower than their highest level.

Outside of Dublin residential property prices were 41.4 per cent lower than their highest level in 2007.

Investec economist Philip O’Sullivan said: “All in all, we reaffirm our view that the path of least resistance for Irish residential prices remains to the upside, given the supportive demand drivers (new household formation, rising employment and earnings, lower taxes on incomes, and falling mortgage rates), while on the supply side completions are running at about a third of their long-term average and less than half of what we would consider a normal level of activity to be.”

“So we expect to see further increases in the Residential Property Price Index over the coming months,” he said.