Residential property prices rose by 6.9 per cent in the year to May, according to new figures published by the Central Statistics Office (CSO).

Property prices were up 0.2 per cent last month, as against a 0.3 per cent rise in April.

The data show property prices in Dublin were 4.8 per cent higher year-on-year and increased by 0.1 per cent in May.

Dublin house prices rose by 0.4 per cent on a monthly basis and were 5.7 per cent higher compared to a year earlier. Apartment prices in the capital were 1.1 per cent lower than in May 2015.

Property prices outside of Dublin increased by 0.1 per cent in May and were up 1.1 per cent versus the same month last year.

While property prices have risen in the capital, they are still 32.8 per cent lower than at their peak in early 2007. Apartment prices are 42.5 per cent down versus their peak while house prices are 35.2 per cent lower.

Outside of Dublin, property prices are 35.7 per cent lower than their highest level in September 2007.

Connall Mac Coille, chief economist at Davy, said while house prices in Dublin are showing stronger momentum, the overall picture was one of modest price gains with the property price index having risen by just 0.5 per cent between December and May.

He said any impact on prices from Britain’s vote to leave the EU will not likely be seen until later in the year at the earliest.

“We do not believe many homebuyers will put off transactions until there is clear evidence of a negative impact on the Irish economy. However, the uncertainty will temper expectations for house price gains and probably tilt the balance slightly towards homebuyers as transactions are negotiated through the summer months,” he said.

Merrion chief economist Alan McQuaid said the housing market may be stronger than the CSO numbers suggests given as the data are based solely on mortgage draw-down and don’t include cash transactions, which he said are still quite sizable.