The area saw prices leap by 28.1% in 2005, according to the annual survey carried out by the estate agents' professional body, the Irish Auctioneers and Valuers' Institute. As usual, most of the big price jumps happened in Dublin, although property in the Munster area also saw some pretty steep increases.

It was the year of the millionaire, according to the report, which revealed that almost 500 Dublin homes sold for 1m and over at auction last year. The report put paid to the predictions of some commentators at the start of last year, who forecast a slow-down in the property market.

One of the biggest movers on the residential side was Dublin 6, taking in most of Ranelagh, Rathmines, Rathgar and Terenure.

House prices here increased by an incredible 23.5% in just one year. And with demand for three- and fourbed houses far outstripping supply, Dublin 6, with its good stock of mature family homes, saw phenomenal prices. Dublin 8 was the other star of the show, with some homes increasing in value by almost 25%.

The report detailed some of the big sales of the year.

On Shrewsbury Road, in Dublin 4, Walford sold for 58m, while Belmont achieved 30m. In Dalkey, south Dublin, Santa Maria sold after auction for over 9m, while in north Dublin, a Georgian residence at 12 Ballymun Road was bought for 2.16m.

At the lower end of the market, the big event of the year was the change in stamp duty for "rst-time buyers in budget 2005, making second-hand homes under 317,500 exempt. The effects were certainly felt by the end of 2005, when most agents reported dramatic increases in this market.

The IAVI report found that homes that had been priced at around 280,000 shot up overnight to just below 317,500, as buyers battled to be the "rst to offer the stamp duty cut-off figure, and most agents agreed that this measure had done little for "rst-time buyers except fuel sharp price increases.

On the new homes front, the IAVI found that their members had another bumper year, with price increases of between 7.9% and 11% reported. However, some agents felt there is still a shortage of new units in Dublin, with the 17,000 completed last year not meeting demand of about 23,000 in the capital.

Also in the new homes sector, many estate agents argued that, with so much high-density development in Dublin in the last few years, there was little available for people trading up market in terms of new three-, fourand "ve-bed units suitable for families with children.

A positive indicator for the new homes market was net inward migration, which jumped to 53,400 to April 2005, compared to just over 31,000 in the same period the previous year. Over onethird of all non-nationals were from the EU accession countries and aged between 25 and 44, and they added buoyancy to both the sales and rental markets. Selling agents reported huge interest in new property among non-nationals, around locations such as CityWest, Saggart, Swords, Blanchardstown and Finglas, close to road networks and large IT centres and employment areas.

But the new apartment schemes within five miles of the city centre were still the most popular when it came to sales, with schemes such as Royal Canal Park in Dublin 15 and Milner's Square in Santry, Dublin 9, selling extremely well, particularly among "rst-time buyers.

While the apartment market generally did very well, one-beds increased at a lower rate in 2005 throughout the country. Even in Dublin one-beds saw an increase of only 7.9%.

Elsewhere in the country, selling agents reported good growth, especially in Munster, where residential property prices were up by 9.3%, up from 9.1% in 2004. However the apartment market outside Dublin did experience a bit of a slowdown, rising by 7.4% compared to an increase of 8% in 2004. In Connacht, selling agents were a little less optimistic than elsewhere, reporting price increases of 5.6% compared to 6.2% in 2004.

Not surprisingly development land rose significantly in price, with a general shortage of sites throughout the country. In Dublin, the rest of Leinster and Munster, development sites increased by 15% in 2005. And with a shortage of prime sites in Dublin, developers now seem to be focusing on small in"ll sites in established locations, where demand for accommodation continues to be strong. Retail sites were also much in demand, especially in Munster.

But the report found that one of the biggest success stories of 2005 was the residential rental market, which for the "rst time since 2001 saw an increase. Even back in 2004, the Irish rental market had become a tenants' market, with plenty of good accommodation available, enabling some tenants to get rent reductions. The past three years had seen residential rents decline between 6% and 8% each year throughout the country.

However, this changed last year, with Dublin agents reporting an increase of 2.9%, compared to a 4.4% decrease in 2004. The rest of Leinster also did well, with agents reporting a 3% increase. Much of this turnaround in the residential market has been attributed to inward migration.

The agricultural sector did well too. Farms in Leinster achieved high prices at just under 18,000 per acre ( 44,000 per hectare), while residential farms sold for an average of 25,698 per acre ( 28,100).

The of"ce market saw some modest increases, and Dublin agents expect increases this year of about 2.9%, with the rest of Leinster expecting a rise of 1.6%.

Munster agents expect of"ce rents to increase by just 1.2%, while Connacht agents were more cautious, expecting increases of just 0.6%.