10% increase in Dublin property prices while rest of country falls

National property prices have risen by 2.8% in the past year – driven by a big increase of 10% in Dublin, latest figures from the CSO show.

The Residential Property Price Index for August shows property prices in the capital grew by 1.9% in August and were 10.6% higher than the previous year. Apartment prioces were also up by 10.1% year-on-year.

This increase offset values outside of the capital, which fell by 2.6% in the 12 months since August 2012.

Overall property prices in Dublin and around the country are still 53% and 48% lower than at their highest level in February 2007.

A study by the property company Savills recently showed that 57% of all residential homes brought during the first half of this year were paid for with cash.

Economist John McCartney, the Director of Research at Savills Ireland, said that international buyers are twice as likely to buy homes entirely with cash, and investors also tend to avoid credit. But there is also a group of domestic homeowners trading in 100% cash.

"The third group is people trading down in the market- very often, they sold prices four or five years ago, they've been sitting on a cash pile since then," he explained.

They now see Dublin house prices increasing rapidly, and they're mobilising."