Irish property prices rose by 1.8 per cent in March, the largest monthly increase in prices since December 2000, according to the latest permanent tsb house price index published today.
The index shows that house prices have reverted to an upward trend after a period of weakness last year.
In the twelve months to March 2002, national house prices rose by 3.2 per cent, up from 2.6 per cent in the 12 months to February 2002 and 2.4 per cent in the 12 months to January last.
Commenting on the results, Mr Niall O'Grady General Manager - permanent tsb Marketing said: "Clearly prices are strengthening on the back of last December’s budget (which introduced more favourable tax treatment of investment properties) and the continuing benign outlook for interest rates. We expect further increases in the months ahead."
Dublin prices rose by 1.0 per cent in March while there was an increase of 2.2 per cent for houses bought outside the city.
The average price paid for a house in Dublin in March was euro236,954 while the equivalent price for a house outside Dublin was euro163,474.
For the month of March prices increased by 2.5 per cent for first-time buyers while prices for second-time buyers grew by 1.3 per cent.
The average price paid by a first-time buyer and a second-time buyer in March 2002 was euro163,626 and euro206,644 respectively. The equivalent prices in March 2001 were euro157,787 and euro202,192.
The average price paid for a new house in March 2002 was euro187,809, while that paid for a second hand house was euro186,605.
The permanent tsb index is compiled in association with the ESRI and is widely regarded as the most credible measure of house price movements in the country.