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Buyers face new bubble in capital

HOUSES in Dublin are no longer under-valued, according to Central Bank Governor Patrick Honohan. That will hardly be news to buyers in the capital who are spending their weekends traipsing from viewing to viewing only to be outbid on every offer they put in.

Mr Honohan's comments came as CSO stats showed that house prices in Dublin rose by 14.3pc in the 12 months from March 2013.

The price of apartments rose in the same period by 16.6pc.

While the price increases are significant, experts caution that they are based on a relatively small volume of sales.

In fact, the number of properties on sale in the capital today is only half what it was in 2009.

This low volume is driving up prices and pricing many middle-income families out of the market.

Mr Honohan says the Central Bank will move to burst any property bubble.

On current trends, it may have to act soon.