Top Dublin property prices rise 8.74%

Prices of second hand residential Dublin property valued at €700,000 and over have risen by an average of 8.74% in the last three months, well above last year's rise of 2.6% in the sector in the same period.

According to the figures released today by estate agent Douglas Newman Good (DNG), prices at the upper end of the market therefore showed more than double the increase for the market as a whole.

However, while prices at the top end of the market race ahead there was welcome news for those trying to get on the property ladder as property at the lower end of the market showed continued price stability.

On average, the price of property worth less than €350,000 increased by 2.2% in the first three months of the year, compared to the same period of 2003, when prices in this sector increased by an average of 5.6%.

Commenting on the results, Paul Murgatroyd, Economist with DNG said: "The first three months of this year have seen a slightly stronger residential market than was forecast, particularly at the higher end of the market.

"In contrast, the lower level of price increases in the first time buyer sector is very welcome news and 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".

"The low interest rate environment has definitely contributed to these results, as people continue to trade up, which in turn has increased supply in the lower and mid sectors of the market and increased demand for higher value property and this has translated into larger increases further up the property ladder," he added.

Looking ahead, he forecast house price inflation for the year as likely to exceed 10%, although DNG still expect the rate of increase in the second half of the year to be lower than in the first six months.