House prices in Dublin rose by an average of 4.1% in the first quarter of this year, according to figures from estate agent Douglas Newman Good.
DNG's house price gauge showed that growth was strongest at the upper end of the market, with the prices of property valued at over €700,000 rising by an average of 8.7%, compared with 2.6% growth in the same period last year.
But prices at the lower end are more stable, with the price of property worth less than €350,000 rising by 2.2%, in sharp contrast to the 5.6% growth in the first quarter of 2003.
'It would appear that the record levels of new housing completions last year have translated into a much more stable environment for those people trying to get onto the property ladder,' said DNG economist Paul Murgatroyd.
He said low interest rates were encouraging more people to trade up, leading to increased supply in the lower and middle sectors and increased demand further up the scale.
DNG still expects house price inflation for the year to be over 10%, helped by improved consumer confidence and job security.
