Second hand houses in Dublin increased by an average of 7% according to the latest quarterly House Price Gauge by Douglas Newman Good.
The average price paid for a second hand house rose to €292,147 during the second quarter of the year, continuing the increase in residential property prices that began in January, the report stated.
Douglas Newman Good says that for the first six months of the year, prices have increased 13.5% on average. For the 12 months to the end of June, prices have gone up by 8.6%.
Property in all areas of Dublin experienced an increase in prices during the last six months. DNG said this reflects the fact that demand remained strong for all property types and supply levels in the second hand market remained low.
Dublin's Northside saw an increase in the average price of property of 4.33% in the second quarter of this month. DNG says that over the past 12 months, prices on the Northside of the city increased by more than the overall Dublin average, rising by 12.2%.
The latest quarterly report also shows that house prices on the Southside of Dublin city increased by 6.8% on average during the last three months. The second quarter also saw an average price rise of 8.1% in property values in the west of the city.
'The primary reason for the increase in prices has been the very low levels of supply coming onto the market during the first six months of the year,' Paul Murgatroyd, Douglas Newman Good's economist.
'On average supply is down by 30% compared to the first six months of last year and fewer properties means less choice and higher prices for potential purchasers. It would be fair to say that the current market picture has definitely been created by this lack of supply with too many people chasing too few properties as the anticipated increased in supply after Easter simply failed to materalise,' he said.
Consumer confidence has also improved with each passing month and this has lead to increased demand compared to the end of last year. 'Properties are selling quicker but stock levels are not being maintained as fewer properties are put up for sale,' Mr Murgatroyd added.
The report also comments that Government intervention in Bueget 2002 has had a marked impact on demand in the market, particulary in relation to the demand for investment property.
