The average house in the Republic grew in value by 6.9 per cent in the first half of 2003, according to the latest Permanent TSB House Price Index.
The index shows house prices rose by 14.7 per cent over the last twelve months indicating a greater buoyancy in the property market than had been predicted.
The 6.9 per cent rise for the first six months of 2003 is up on the 5.6 per cent recorded for the corresponding period last year but slightly less than the 7.3 per cent for the second six months of 2002.
The research which is produced in conjunction with the Economic and Social Research Institute (ESRI) shows the average price of a house in June stood at just over €220,000. The equivalent price in June last year was €191,891.
Predictably the biggest growth rates were recorded in Dublin where house prices rose by 16.4 per cent in the 12 months to June. The average price paid for a house in the capital is currently €292,359.
Overall house prices in Dublin have risen by almost 240 per cent since 1996.
Outside Dublin house prices grew by 12.9 per cent with the average price paid for a house property being €190,257.
Nationally house prices have risen by an average of 180 per cent since 1996.
During the month of June, national house prices rose by 1.1 per cent - aslight slowdown on the monthly growth rates of 1.7 per cent and 1.3 per cent experienced in May and April 2003 respectively. In June of last year national house prices rose by 0.5 per cent.
Permanent TSB's Mr Niall O'Grady said: "The first six months of the year have clearly yielded astronger rate of growth in house prices than had been predicted at thestart of the year."
Mr O'Grady said: "While it seems that demand for new houses is now beingmet by the increase in house building of the last few years, increasingdemand for existing homes (typically from people trading-up) is driving asignificant proportion of the current growth."
The figures show that for the first six months of the year the average prices for new houses rose by 3.3 per cent while the prices for existing houses rose by 8.0 per cent.
This compares to rises of 1.7 per cent and 7.4 per cent for the same period last year.
On a national level prices rose by 8.6 per cent for first time buyers and 6.2 per cent for second time buyers over the first six months of the year. This compares to rises of 5.2 per cent and 5.1 per cent respectively over the same period last year.
