House prices soar 12.2% in capital

DUBLIN house prices are growing faster than anywhere else in the country - with the average price of a home in the capital standing at €378,822.

Permanent TSB said the rises were coming in advance of May’s SSIA savings bonanza when investors get their hands on millions of euro.

Prices over the last 12 months rose 12.2% in Dublin and 11.2% in the rest of the country, where the price of a typical house was €245,925.

According to figures released by the financial institution, the price gap between Dublin and the rest of the country was €132,897.

In February, prices rose 1.5% in Dublin and 0.9% in the rest of the country, averaging 1% for the whole of the Republic. Since January, prices overall rose 2.2% - four times the rate at the same time last year.

Permanent TSB spokesman Niall O’Grady said: “It was a very strong start to 2006 with prices growing so far this year at rates not seen since 2000.

“The strong growth trend from the second half of 2005 continued into the first two months of 2006 driven by confidence in the economic outlook and the SSIA accounts.”