NEW house prices in Dublin rose by 5.8 per cent in the second quarter of the year, according to figures released by the Department of the Environment yesterday.
However, house prices in the whole of the State have risen by a more modest 3.9 per cent, the Housing Statistics Bulletin reveals.
The increase in second hand house prices is even greater. In the Dublin area second hand house prices have risen by 11 per cent on the last quarter and nationally there has been a 10 per cent increase.
The average price for a new house in Dublin in the first quarter of this year was £71,618, this has now risen to £75,768. The average new house price in whole of the country was £66,698 for the last quarter.
Outside Dublin the biggest increase in new house prices came in Waterford where the average price for a new house has risen from £56,007 to £61,904.
Compared to a year ago new house prices went up by 10.5 per cent nationally.
The figures are derived from data supplied by the banks and building societies on loans approved by them.
The housing statistics also show a 13 per cent increase in house completions for the first half of 1996.
The Minister for the Environment, Mr Howl in, said: "All the indications are that the record number of new house completions in 1995 will be exceeded in 1996."
The largest increases in house completions since the last quarter, have been in Kerry, Waterford and Monaghan.
Alongside the increase in house completions the figures show that banks add building societies are increasing the amount of credit they give loan applicants.
The department's statistics show a 21% increase in mortgages approved - it reached £771.5 million. The banking sector shows the biggest increase in loan approvals. There was a 10 per cent increase in loan's for new homes.
Endowment mortgages continue to fall from favour, making up only 5.7 per cent of all loans approved.
There has also been a decrease in the amount of borrowers choosing a mortgage with a variable rate of interest. In the last quarter over half of all loans approved had a variable interest arrangement.
This has now fallen to 42.1 per cent, compared to 57.9 per cent who chose a fixed repayment arrangement.
