Property prices in Dublin have increased 8 per cent over the last 12 months, according to new figures released by the Central Statistics Office.

In July, Dublin residential property prices grew by 3.3 per cent, and were 8 per cent higher than a year ago.

The latest Residential Property Price Index shows property prices have increased nationally by 2.3 per cent in the 12 months to July. In the preceeding 12 months house prices nationally had declined by 13.6 per cent.

Dublin house prices were 7.5 per cent higher last month than July 2012, while apartment prices were 11.6 per cent higher.

The CSO said house prices in Dublin were 52 per cent lower now than at their peak in early 2007, while apartment prices were 59 per cent lower.

The fall in the price of residential properties in the rest of Ireland is somewhat lower at 48 per cent.

The price of residential properties in the rest of Ireland fell by 0.1 per cent in July compared with an increase of 0.3 per cent in July last year.

Goodbody economist Dermot O’Leary said residential prices in Dublin are now rising at their fastest annual pace since May 2007, due to tightening supply conditions in the capital.

“Of some concern is the fact that this acceleration in price inflation has come without any pick-up in mortgage lending,” he said.