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Property prices in Dublin rise 20 per cent

HOUSE prices in Dublin have soared by more than 20 per cent in the past year.

Prices are rising at the quickest rate since the peak of the property boom seven years ago, latest official figures show. Breaching the double-digit barrier across the Republic, a more than 10 per cent jump in residential property prices over the last year has sparked calls for more homes to be built - particularly in Dublin.

Lack of suitable housing in the capital - where prices have soared more than a fifth (22.4 per cent) over the last year and 4.4 per cent last month alone - has been blamed for driving up the average price.

The latest Central Statistics Office (CSO) report reveals the average cost of buying a home rose by 10.6 per cent since May last year. It is the first time since the economic crash that house prices have been rising at double-digit levels. House prices in Dublin remain more than 44 per cent lower than peak prices at the height on the boom in February 2007 with prices across the state on average still 47 per cent lower. Peter Stafford, of Property Industry Ireland, which represents businesses working in the property and construction sector, said action is needed to tackle a lack of supply in housing.

He warned the lack of suitable housing would reap social as well as economic consequences.