House prices continue to increase across the country, with particularly sharp increases recorded in the commuter counties around Dublin, according to the latest Permanent Tsb house index.
In the 12 months to June, national prices rose by 15.2 per cent, more than twice that recorded in the 12 months to June 2005.
Houses under construction at Hamilton Place, Trim, Co Meath.
The nationwide index compiled in association with the ESRI shows that house prices rose by 1.2 per cent in June, bringing price growth this year to 7.9 per cent.
According to Niall O'Grady, head of marketing, Permanent Tsb: "All sectors, particularly commuter counties, have experienced strong rates of growth. However it is expected that the recent ECB rate increase and the expectation of further increases will cause the rate of price growth to ease during the second half of the year."
House prices in the commuter belt encompassing counties Louth, Wicklow, Kildare and Meath grew by 17.4 since June 2005. This is almost four times the rate recorded in the 12 months to June 2005.
House prices grew by 16.1 per cent in Dublin in the 12 months to June and by 15.2 per cent in the rest of the country. The average price paid for a house in Dublin is now €402,329, while in the rest of the country the average price is €259,089.
House prices grew by 16.4 per cent for first-time buyers, indicating that demand remains strong despite the record number of house completions. The average price paid by a first-time buyer in June was €268,508, an increase of nearly €20,000 since the start of the year.