Property prices are expected to rise by about 5% this year as supply shortages, demand is high and pandemic savings continue to drive activity.

A survey carried out showed 90% of 189 estate agents surveyed in December expect property prices to increase this year, ranging from a 5% increase in Dublin, Leinster and Munster. A 7% increase is expected across Connacht and Ulster.

The majority of agents who expect prices to rise believe it is due to the lack of supply of new and existing homes.

Nationally, property prices rose by 14 per cent between January and October last year compared to just 0.3 per cent in the same period the previous year. With residential property completions only due to hit the 30,000 mark in 2023. It is estimated the State needs to be building 40,000 units per annum to meet demand.

To stop this sharp rise in property prices, it is vital that the supply of properties is increased rapidly.