Prices for new houses are rising more than twice as fast as those for existing homes, according to the latest Permanent TSB survey.
New homes have seen prices rise by 3.9 per cent in the first quarter of 2004, compared to 1.7 per cent for second-hand property.
In March, there was a 1.1 per cent increase in prices of newly-built homes to €232,470, while existing property climbed 0.9 per cent to €245,400.
Over the past year, prices have risen 13 per cent and 12.6 per cent respectively.
In general the house price index, compiled in association with the Economic and Social Research Institute, found that the rate of house price growth was slowing.
Nationally, growth rose 0.7 per cent in March 2004, down slightly on the 0.9 per cent rate in February.
The annualised rate of increase was 12.9 per cent, confirming the recent downward trend. Rates have been above 13 per cent this year to date.
Last summer, house prices were moving ahead by 15.6 per cent per annum.
Mr Niall O'Grady, the head of marketing at Permanent TSB, said there was now clear evidence of a "gradual moderation" in the rate of house price growth.
"We still expect an increase of around 8 per cent for 2004 as a whole, which would be a welcome soft landing to more sustainable growth levels for the market," he said.
The average price paid nationally in March was €238,813, compared with €211,500 in the same month last year.
After a couple of months where houses outside Dublin were appreciating faster than those in the city, the capital this time showed faster growth. Prices rose 1.5 per cent in Dublin in March, with property elsewhere in the State achieving 0.6 per cent.
However, over the last year, prices outside the capital have been stronger, rising 13.5 per cent compared to 12.8 per cent.
A Dublin home now costs €314,138 on average, 50 per cent more than one outside the city where the average price in March was €208,575.
First-time buyers saw prices unchanged for the first month in a long time in March with second-time buyers facing a 1 per cent rise in values.
Separate research into the commercial property market in the first quarter of 2004 found that prime office rents were stabilising although tenants were still finding inducements on offer. The CB Richard Ellis Gunne report said vacancy rates in the office sector remain around 14 per cent.
Retail remains the star sector with demand particularly strong from convenience store operators, pharmacies and newsagents seeking prime locations.
In the industrial sector, demand is down with most tenants interested in renting smaller sites.
