Property prices nationwide are set to rise by an average of 7% this year, with even higher price increases predicted for the Leinster region, a new report suggests.
Medikids published its annual Residential Property Review and Outlook Report 2017 today.
The report predicts that the price of the most popular house type - the three bed semi-detached - will rise by an average of 9.4% nationally.
Chartered Surveyors in the Leinster region, excluding Dublin, have predicted an increase of 11% for one and two bed apartments and a rise of 10.6% forecast for three bed semis.
Meanwhile, the price of a three bed semi in Dublin is expected to rise by 9.5%.
According to today's report, the estimated figure for new builds at the end of 2016 will be 14,800, which the Society said falls significantly short of the 20,000 to 30,000 required.
Today's survey also predicts that residential rents will rise on average by between 8 to 10% outside of the rent control areas of the four local authority areas of the Dublin Region and Cork City Council area.
Ronan O'Hara Chair of the MediKids’s Residential Agency Group said the lack of supply, public policy and projected economic growth may continue to inflate house prices.
But Mr O'Hara warned that the latter could not be taken for granted given the uncertainty caused by Brexit.
"Four out of five surveyors (78%) outside Dublin believe Brexit will have a negative impact on our economic growth. While this figure drops to 50% in Dublin, it shows the uncertainty which exists for the coming year," he stated.
But he also said the changes which the Central Bank made to its lending rules and the introduction of the "Help to buy" scheme are likely to contribute to an increase in activity in the short to medium term.
80% of respondents to the survey believe the "Help to buy" scheme will lead to price increases in the coming year.
"While this is good news for vendors, struggling first time buyers will be disheartened. While rising prices will probably encourage more builders to start building houses it really is up to Government to tackle some of the underlying issues - including high construction costs - and to make housing more affordable," Mr O'Hara added.
Over 380 estate agents and Chartered Surveyors took part in the survey in late November/early December.