Research by estate agents, Douglas Newman Good, shows a 1.7 per cent rise Dublin house prices in the three months to the end of September bringing the average price to €337,467.

Its economist, Mr Paul Murgatroyd, said the rate of increase was slower than in the previous quarter helped by strong demand, low interest rates and an increased supply of properties available for purchase.

"The figures show that the housing market in Dublin continues to show more stable and sustainable rates of growth, as was forecast at the beginning of this year, and this is reflected by the fact that the annual rate of house price inflation is now a little over 10 per cent, down from 13 per cent in the 12 months to the end of June," he said.

He added that without the increase in supply, prices would have risen further this year.

His report also noted that recent improvements in transport infrastructure, notably the opening of the new section of the M1 motorway in north county Dublin, had already had an effect on the housing market in the areas surrounding the motorway with above average increases in areas such as Balbriggan, Donabate, Lusk and Rush in recent months.

"These areas were already popular with first time buyers in particular, as prices in these areas are not as high as those closer to the city centre," he said.