The latest Residential Property Price Index, published by the Central Statistics Office, also showed that while the quicker rate of increase in Dublin is driving the national rise in property prices, house and apartment prices in Dublin are still way below the peak of 2007.
Nonetheless, property prices outside of Dublin are now rising at their fastest rate since 2007.
In Dublin, residential property prices grew by 2.7% in July, but when the capital city is excluded, house prices in the rest of the country rose just 1.3% during July and are only 4.9% higher than the same month last year.
Apartment prices in Dublin were 26.3% higher in July than in the same month last year, while house prices in the capital were 23.1% higher compared with those for the same month last year.
However, house prices in Dublin are 41.2% lower than at their highest level in early 2007, with apartments in Dublin costing on average 48.4% less than they were in February 2007.
Elsewhere, the price of residential properties in the rest of the country is 45.1% lower than their highest level in September 2007.
Minister for Housing and Planning Paudie Coffey welcomed the figures but admitted that certain parts of the country were experiencing the effects of a lack of supply of accommodation, resulting in increased prices along with increased demand.
Mr Coffey said: “The central aim is to provide homes by tripling housing output by 2020 and adding up to 60,000 jobs to the construction sector over the same period.
“Ireland needs a competitive, innovative, dynamic, safe and sustainable construction sector; one that makes its full and proper contribution to the economy and is capable of delivering for families.”
David McNamara of stockbrokers Davy said: “The pick-up in house price inflation has not been driven by mortgage lending. Rather, cash buyers continue to account for over 50% of transactions in the market.”
He said the lack of new housing supply, married to rising rents, had enticed cash buyers into the market, but that this group was “unlikely to be a sustainable source of demand over the longer term”
He also said house building had begun to pick up, with 3,941 house completions in the first five months of this year compared to 2,997 in the same period in 2013.
Mr McNamara added: “Price rises could well persist in the short term until ample supply begins to hit the market.”
Property Industry Ireland director Peter Stafford said that the figures showed “the real impact of a lack of new supply into the housing market”.