Confirming an earlier CSO survey showing a rapid rise in home prices, the latest DNG House Price Gauge covering the second quarter of this year shows Dublin prices rising by an average of E220 a day.
That's about E6,600 a month from April to the end of June 2014, with foreign investors now looking to the Irish market for investment, it said.
However the second quarter increase of 5.9pc dropped from a high of 8.9pc in the first 3 months of the year reflecting an increase in the availability of properties which according to the Property Price Register saw a 36.8pc jump*. DNG is now predicting an annual house price increase of 20pc at the end of the year.
The year on year increase of 25.2pc means that most homes still stand 51pc below their peak value in 2006 but houses in certain areas of Dublin have now closed that gap to around 25pc - 30pc. The average house is now 44pc more valuable than it was at the bottom of the market in Q2 2012. Despite the increases, Ireland still lags behind England, Scotland, Wales and Northern Ireland in house transactions/sales per 1,000 according to an analysis by the estate agency.
The average cost of a Dublin home now stands at E349,000, a rise of E6,666 per month since the beginning of April or E71,000 since June 2013.
In addition houses in West Dublin increased at almost twice the rate of houses in the north and the south of the city at 9.6pc versus 4.1pc and 5.6pc respectively. This appetite for starter home was also reflected in the three month 10.9pc price increase in houses in the sub E250k mark or 36.6pc over 12 months. According to DNG as the value of the property rises so the rate of increase during quarter two slows down, with the lowest rate of increase evident in the most expensive sector of the residential market at 3.3pc during the second quarter.
Commenting on the results Keith Lowe, CEO, DNG said "Property prices in Ireland fell too far and too fast and it was inevitable that prices in the greater Dublin area in particular were going to rebound strongly. The fact that property prices in the capital have risen at a more realistic and sustainable level this quarter than that experienced in the first quarter of 2014 is to be welcomed. We would anticipate that house prices in the capital will show further growth in the second half of the year but at more moderate levels."
He also added "The sharp price rises experienced at the entry level price bracket and properties located in west Dublin, in particular, is good to see. These have been slower to recover than other areas and price categories and are now playing catch up with the rest of the market."
Speaking on the overseas investor interest in Ireland Mr. Lowe also said "There is currently very strong interest in Ireland from international funds, many of which have now turned their attention to the residential market and which will also continue to assist market recovery in the coming 12 months."
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