Irish residential property prices increased by 7.9% in the 12 months to May, marginally higher than the 7.6% rise in year up to April, according to latest figures from the Central Statistics Office.
Prices rose faster outside the capital where they were up 8.7% while the cost of buying a home in Dublin was up 6.9%.
The median price of buying a home in the 12 months to May was €370,000.
The most expensive Eircode area over the 12 months to May was A94 in Blackrock in Dublin with a median price of €770,000, while F45 in Castlerea in Roscommon had the least expensive price of €150,000.
"In the 12 months to May 2025, house prices in Dublin rose by 6.8% while apartment prices increased by 7.2%. The highest house price growth in Dublin was in Fingal at 9.3% while Dún Laoghaire-Rathdown saw a rise of 5.1%," the CSO said.
Outside Dublin, house prices were up by 8.9% and apartment prices rose by 6.7%.
The CSO said the region outside of Dublin that saw the largest growth in house prices was the Border (Cavan, Donegal, Leitrim, Monaghan, and Sligo) at 11.1%, while the South-East (Carlow, Kilkenny, Waterford, and Wexford) recorded a 7.7% rise.
Commenting on today's figures, Trevor Grant, the chairperson of Irish Mortgage Advisors, noted that property prices continue to rise faster than incomes, pushing homeownership even further out of reach for many, especially first-time buyers who are now regularly competing with trader-uppers for an ever-shrinking pool of second-hand homes.
He said that with supply still falling well short of demand, this imbalance is not likely to correct itself anytime soon.
Mr Grant said that the median mortgage for a first-time buyer has surged by 36% since 2019 (according to BPFI data), now sitting just shy of €300,000. For buyers in high-cost areas, this number is even higher.
"Despite that pressure, mortgage approvals have hit record highs. Buyer appetite remains strong, especially among first-time buyers," he said.
"One in three first time buyer (FTB) homes were valued over €400,000 in 2024, three times the 2019 share. And it has recently been reported that average household incomes for new buyers sits at €85,000, so it's clear that affordability continues to be stretched, " he stated.
He also said that while mortgage interest rates have eased in recent months, and some lenders are now offering sub-3% rates, affordability pressures remain severe.
Properties are regularly selling well above asking price, with recent reports stating that one in six or seven now are going 20% over, he added.
Mr Grant said the fundamental issue continues to be the chronic undersupply of housing - with just over 30,000 completions in 2024.
"Yet we know we need at least 50,000 new homes per year for the next five years to meet demand," he said.
He said the shortage of private supply is particularly acute, and developers are still facing major challenges, including rising build costs, planning bottlenecks, and labour shortages.
"Delays in connecting new homes to essential utilities like water and electricity are also adding to delivery timelines and further restricting the pace of supply. Without targeted intervention to boost output and streamline the development process, house price inflation will persist," he added.
