House price inflation for 2002 grew at three times the previous year's rate and is predicted to continue rising, according to the latest survey.
The Permanent/TSB annual House Price Index, compiled with the Economic and Social Research Institute, published this morning, also showed second-hand house prices running ahead of new homes.
The year-end edition shows house prices nationally grew by 13.3 per cent in 2002 compared to annual growth of 4.4 per cent for 2001.
The average price paid for a house nationally in December was €205,898.
Mr Niall O'Grady, general manager at Permanent TSB said: "The key drivers [to the price increases] appear to have been a significant increase in activity by investors - prompted not least by favourable treatment in the budget at the end of 2001".
He said more first-time buyers returning to the market also boosted demand.
Prices in Dublin ran ahead of the national average, increasing by 15.9 per cent; outside the capital the survey showed price growth of 12.6 per cent.
The average price paid for a house in Dublin in December 2002 was €272,671; an equivalent house outside Dublin cost €180,405 on average. This compares to €235,299 and €160,263, respectively, in December 2001.
The price of new houses nationally rose 7.1 per cent compared to 2001, while second hand houses went up 16.3 per cent. The average price paid for a new house in December last was €201,808, while the average for a second hand house was €210,780.
As always, houses in the capital were most the expensive. Dublin city's average was just over €285,000, and Dublin county came in at just above €280,000. Wicklow ranks as the most expensive of the "commuter" counties at €260,000, with Kildare and Meath close behind at €225,000.
Mayo was the cheapest county in Ireland to buy a house, with an average price of €151,000.