The Central Bank is warning that surging property prices could harm Ireland's economic recovery. Nationally, prices have increased by 16.3 percent - a figure that rivals the boom's boomier years.

The regulator is warning that if people believe that prices will continue to rise - that mindset could encourage property speculation and destabilise the market.

Year-on-year growth in Dublin house prices has been above 23 percent since June. The previous highest rate of growth was 22.5 percent, recorded in August 2006. 

There were only 4,000 houses for sale in Dublin at the end of October - this figure is 60 percent lower than it was 12 months previously.

The report says that a lack of supply is the main factor driving up prices. The regulator warned that barriers to constructing new houses need to be removed, and that increasing supply would take the heat out of the market.

According to the Central Bank's figures, growth will remain high throughout 2015. It indicates that demand will surpass supply in all part of the country, except for the west and mid-west, and the border region.

The Central Bank surveyed property professionals and reported that 97 percent of its respondents expect house prices to continue to rise next year.