Modest rises predicted in 'stable' land market
Published 27/01/2016 | 02:30
The most recent survey of the land market of 2015 comes from Ganly Walters and puts the average price of land in the €10,000/ac ballpark naming a figure of €10,336/ac.
This marks a decrease of 1.8pc from the €10,526/ac paid in 2014. A survey in this newspaper recently on land sold at auction in 2015 put the average price at €10,135.
Ganly Walters made their calculations from 209 auction and private treaty sales for which prices were disclosed. This was the equivalent of 13,622ac sold for a total of €140.8m in 2015. In acreage terms the 2015 figure is down 4.3pc on 2014 levels.
As many as 552 farms were offered for sale on the open market last year, amounting to a total of 42,800ac, which is slightly down from 2014. The highest demand has been for the larger blocks of land, with farmer companies buying up bigger blocks in order to expand.
According to the Ganly Walters survey a further 1,605ac changed hands in 2015 for undisclosed prices. When these are valued at the average per acre price, the total value of sales in 2015 can be estimated at more than €157.3m.
The 15,200ac changing hands represents an 11pc drop in the farmland market from 2014. It is interesting to note that the survey undertaken by this newspaper saw a 41pc increase in the amount of land sold at auction and a 42pc increase in the money generated at auction.
Commenting on survey findings Robert Ganly observed that "the highest price paid per acre during 2015 was for farms of 200ac or more, with strong demand generating an average per acre of €12,630 in this category.
"This goes against the traditional trend, which usually sees higher per acre prices achieved for small land parcels, as these are considered more affordable," he said