After almost two years of moderation, stronger July and August price increases indicate some strengthening in the property market with the first time market rising faster, according to new data.
House prices rose by 1 per cent in August — leaving the year-to-date growth figure at 4.4 per cent, according to the latest Permanent TSB/ESRI house price index.
However the average price paid by first time buyers rose by 7.6 per cent over the eight months as more first time buyers purchased existing rather than new houses.
Commenting on the results, Niall O'Grady, head of marketing at Permanent TSB said the survey indicates a strong pick-up in activity over the summer. He added that changes in stamp duty rates had also led first time buyers to switch focus from new to older houses.
Dublin house prices have risen by 5.2 per cent in the first eight months of 2005, while the equivalent growth rate outside Dublin was 4.2 per cent.
The average price paid for a house in Dublin and outside Dublin in August 2005 was €352,302 compared to €229,136 outside the capital.