Dublin house prices are now rising by €5,000 a month, according to real estate agent Douglas Newman Good (DNG).
The group’s latest House Price Gauge suggested house prices in the capital have risen by 23 per cent in the last 12 months as demand continues to exceed supply.
The figures also indicated that average prices in Dublin rose by 8.9 per cent during the first quarter of this year, the seventh consecutive quarterly rise.
The average resale price of a Dublin house now stands at €329,719, reflecting an annual increase of €62,000 or €5,000 each month.
The DNG report - one of three property price surveys published today - found entry-level prices grow the most at 12.9 per cent in the first quarter of 2014.
Lack of supply in the property market is continuing to drive prices, the report said, noting the increasing demand reflected in the 400,000 homes which are now rented versus 200,000 in 2006.
DNG said rising rents and the creation of an addition of 20,000 new households annually have all contributed to the increasing house inflation.
Although residential property prices remain 50 per cent below their peak, it said there had been a 36 per cent increase on average since the market low point in early 2012.
Commenting on the results, DNG chief executive Keith Lowe said: "Property prices in the capital were always likely to rebound quickly as they fell too fast and too far."
“What is happening at the moment is a realignment of house prices in the capital. This is good news for anybody who purchased a house in the greater Dublin area in the last 18 months and those in negative equity.”
“We have also noted a marked improvement in consumer sentiment coupled with a significant increase in the availability of mortgage finance. We anticipate further market recovery this year in the capital and in a number of other key urban areas outside Dublin,” he added.
In order to increase supply, DNG called on the Government to follow the UK’s lead by introducing specific measures, including a new homes grant or tax credit for buyers of new houses, to support the battered housing building industry.
Two other property price surveys from Daft and MyHome also indicated recovery in the Dublin property market continued to gather momentum.
However, the websites gave contrasting pictures of what was happening outside the capital in their asking-price reports for the first quarter of 2014.
MyHome’s latest property barometer suggested asking prices in Dublin rose by 1.3 per cent to €244,000 in the first quarter of this year, the fourth consecutive quarterly rise.
In contrast, it found prices nationally fell by 0.7 per cent to €188,000. However, this was the lowest rate of decline in more than six years.
Figures from Daft found the average asking price for properties outside Dublin rose 2.3 per cent during the first three months of 2014, the first quarterly rise since mid-2007, ending a run of 26 quarters of falling values outside the capital.
The website’s latest house- price report shows average asking prices in Dublin rose by 5.7 per cent during the same period.
Nationally, the average asking price was now €177,000, up 3.5 per cent on the same period last year but still 53 per cent down on the market’s 2007 peak.
