The price of new houses in the western and northern suburbs of Dublin has increased by an average of over 4 per cent during the first quarter of 2001, according to figures supplied by Leahy Property Consultants.

Since the start of the year, Leahy says it has sold 594 units totalling £96.3 million (€122.3m). While larger three and four-bedroom houses have shown an increase in price of up to 7.5 per cent, smaller one and two-bedroom apartments have jumped by 2 to 3 per cent.

Predicting that the cost of new houses in Dublin will rise by 10 per cent this year, Gerry Leahy says that demand is strong but less frenzied than previous years. "Purchasers are becoming far more discerning and while they are willing by and large to accept the higher density styles which eliminate private gardens, they insist on being compensated with quality spacious design, or in its absence, competitive pricing."

Outside Dublin, demand for houses in the arc from Carlow to Drogheda remains solid but prices have stayed almost static, with the average three-bed semi-detached house costing from £105,000£115,000 (€133,350-€146,050).