An EU official has said the rapid rise in property prices in the Dublin area over the past year is not overly concerning.

The senior official in Brussels said it is not worrying at this stage that prices are now growing at their fastest rate since 2007.

National property prices rose by 1.8% in September, according to the Central Statistics Office's residential property index.

It was the fourth consecutive monthly rise, pushing the property index up to 3.6% on an annual basis.

However, in Dublin, property prices are now 12.3% higher than a year ago.

Prices outside the capital fell by 2.6% in the same period.

The EU official said a perceived asset bubble developing in Dublin is not a problem, saying said house prices need to recover from the crash.