The most expensive houses in the State continue to be found in Dublin 4 where the average price of a home is €570,000 - over three times the average price for houses in Donegal.
Nationally, house prices grew by 1.3 per cent in December, bringing growth for the last three months of 2003 to 3.9 per cent.
This compares to a rise in house prices of 1.2 per cent in December 2002 and growth of 3.9 per cent in the last three months of 2002.
The average price paid for a house nationally in December was €234,066. The equivalent price in December 2002 was €205,898.
Mr Niall O'Grady, General Manager of Permanent TSB said: "At a national level, house price growth during the year was certainly stronger than most experts had predicted.
"At a regional level the rate of growth in some of the rural counties was particularly striking with areas like Roscommon, Mayo and Monaghan each experiencing growth of 20 per cent or more.
"On the plus side," he said "there is evidence that the record number of new houses now being built is leading to moderation in the rate of growth for new houses while strong demand continues to feed into higher prices for second hand houses."
Prices are expected to rise by eight or nine per cent over the course of 2004.
Dublin 4 (Donnybrook/ Sandymount) ranks as the most expensive area in which to buy a house in Dublin in 2003 at an average of €570,000.
Dublin 10 (Ballyfermot) and Dublin 22 (Clondalkin) are the least expensive areas to purchase, as was the case in 2002, with prices averaging €200,000 and €225,000 respectively.
House prices for first-time buyers and second-time buyers increased by 14.7 per cent and 13.4 per cent respectively in 2003.
The annual growth rate for first-time buyers and second-time buyers in 2002 was 11.8 per cent and 13.3 per cent respectively.
The price of new houses (nationally) rose by 10.8 per cent in 2003, while there was a rise of 14.4 per cent for second hand houses.