Irish residential property prices at a national level increased by 8.6 percent in the year to November, according to new figures from the Central Statistics Office (CSO) on Monday.
This compares with an increase of 6.9 percent in the year to October and an increase of 4.2 percent in the 12 months to November 2015, the CSO said.
In Dublin, residential property prices increased by 5.9 percent in the year to November. Dublin house prices increased 5.6 percent, whereas apartments increased 9.6 percent in the same period.
Residential property prices in the rest of Ireland were 12.8 percent in the year to November. House prices in the rest of Ireland increased 12.9 percent over the period. Apartment prices in the rest of Ireland increased 7.8 percent in the same period.
On an overall basis, the national index is 31.5 percent lower than its highest level in 2007. Dublin residential property prices are 32.2 percent lower than their February 2007 peak, while residential property prices in the rest of Ireland are 35.9 percent lower than their May 2007 peak.
From the trough in early 2013, property prices nationally have increased by 50.3 percent. In the same period, Dublin residential property prices have increased 65.8 percent whilst residential property prices in the rest of Ireland are 47.5 percent higher.
Alan McQuaid, an economist with the Dublin-headquartered Merrion Stockbrokers, said a lack of supply of houses has clearly pushed up prices, particularly in the Dublin area in the past few years. But it is not something that can be rectified overnight, he said, adding that until this issue is addressed, prices in the capital and its outskirts will likely remain elevated, even with Brexit related risks.
The easing of mortgage lending restrictions imposed by the Central Bank combined with the tax-incentive scheme for first-time buyers announced in the October Budget will keep upward pressure on prices until new supply comes on the market, the Irish economist said.
"The real question is whether we need this type of incentive at all, with politicians seemingly not learning their lesson from the property crash, financial crisis," McQuaid said.
"Taking all the factors into consideration, we see house price growth remaining in positive territory on a year-on-year basis for a while yet, with the annual rate of increase set to hold in the 6-9 percent range in December and into the first half of 2017," McQuaid predicted.
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