Property prices nationally rose by 4.4 per cent last year despite higher mortgage rates and cost-of-living pressures.
The latest residential property price index for December showed annual house price inflation has now risen for four consecutive months.
Prices were also up by 1.5 per cent on a monthly basis, the fastest level of monthly growth seen in nearly two years.
In Dublin, where supply pressures are most intense, prices were 2.7 per cent higher in December than a year earlier while property prices outside Dublin were 5.7 per cent higher.
The rate of price growth softened significantly in the middle of last year on the back of 10 consecutive interest rate rises from the European Central Bank, which have made it more expensive for buyers to borrow.
“There has been real evidence in recent months of the Irish housing market regaining momentum,” Ian Lawlor of the Lotus Investment Group said. “Predictions by a number of estate agents suggest that house prices will continue their upward climb, particularly in areas outside of Dublin,” he said.
“Based on our own real-time conversations with house builders, there is still huge demand for the new developments coming to the market – both in Dublin and beyond”.
Trevor Grant, chairperson of the Association of Irish Mortgage Advisors, said the continuing rise in house prices will be a source of frustration and worry for first-time buyers.
“The scarcity of housing supply, coupled with the huge demand for housing, will continue to drive house prices up this year,” he said.
“It’s imperative that more supply comes on board. More supply will ultimately keep the rate of house price growth in check.”
