New figures from the Central Statistics Office show that residential property prices at a national level increased by 15% in the year to September.
This marked the 16th annual increase in a row.
The figures show that on a monthly basis, residential property prices rose by 1.8% in September from August.
In Dublin, residential property prices grew by 2.5% in September on a monthly basis, while they were 23.4% higher than this time last year.
Dublin house prices rose by 2.4% in the month and were 22.6% higher compared to September 2013.
Apartment prices in the city were 35.2% higher than the same time last year.
Meanwhile, the price of residential properties in the rest of the country rose by 1.1% in September. Prices were 7% higher than this time last year - the fastest rate of growth in seven years.
Goodbody economist Juliet Tennent said that while the CSO does not give a detailed regional breakdown, it is likely that the recovery is being driven by urban areas around the country.
But despite the gains of recent months, house prices in Dublin are still 37.7% lower than their highest level in early 2007, while Dublin apartments are 44.2% lower than in 2007.
The price of homes in the rest of the country is 44% lower than at their highest level in September 2007.
The Central Bank has warned that a protracted delay in addressing housing shortages, particularly in Dublin, has the potential to put prices on an unsustainable path again.
The CSO figures do not include cash buyers.
Analysts said that although cash sales are not as high now compared with the start of the year, they are still significant and account for three to four of every ten transactions.
Commenting on today's figures, Merrion economist Alan McQuaid said a lack of supply of houses is clearly pushing up prices, particularly in the Dublin area.
The economist said that the other key issue remains credit availability in the economy, although mortgage approvals data would suggest that things have started to improve on this front.
"However, the new lending restrictions imposed by the Central Bank are likely to weigh negatively on first-time buyers from the start of next year and should help to push down house price growth in 2015," Mr McQuaid said.
He added that while all the media focus has been on house buyers, another key issue that needs to be tackled if house building is to pick up to meet long-term demand is available credit for potential property developers.
Goodbody economist Juliet Tennent said that with the supply response still in its early stages, increasing demand will continue to put upward pressure on residential property prices, particularly in Dublin.
She said that the expiration of capital gains tax relief at the end of this year, along with the proposed introduction of caps on Loan to value (LTV) and Loan to income (LTI) ratios by the Central Bank, are likely to see a surge in activity in the residential property market during the final months of the year.
However, the Central Bank proposals may act as a constraint on house price growth once they are introduced, she added.
