New figures from the Central Statistics Office show that residential property prices rose by 2.3% nationwide in August from July.
This unexpected increase marked the biggest rise since last October .
Residential property prices were up 9.5% on an annual basis.
The CSO said that Dublin residential property prices rose by 2.8% last month, which means that Dublin property prices are 8.2% higher than the same time last year.
Today's figures show that Dublin house prices rose by 3% in August whilst Dublin apartment prices inched 0.3% higher.
Residential property prices rose by 1.9% in August outside of the Dublin region, while prices were up 10.8% compared with August last year.
Analysts said it was difficult to know whether the rise in residential property prices last month was just a seasonal thing or a sign of renewed strength in the housing market on the back of a booming economy.
They also pointed out that it was too early to draw a conclusion about a new trend in prices based one month's figures.
Merrion economist Alan McQuaid said that one has to assume that the tighter lending restrictions imposed by the Central Bank and the end of the Capital Gains Tax property purchase incentive scheme would weigh negatively and bring prices down to more affordable levels.
But he added that the generally better economic backdrop, particularly in relation to the labour market, should see house prices remaining higher on a year-on-year basis for a while yet even with credit restrictions and increased planning permissions.
KBC Bank Ireland's economist Austin Hughes said that despite today's surprising increases, he still thinks the trend of easing in the pace of property price inflation continues.
"The combination of strengthening domestic economic conditions and a lack of supply in key segments means this is likely to be an extended and uneven process," he added.
