CPO land maintaining high value
Tuesday August 10 2010
LAND bought under compulsory purchase orders (CPO) is still commanding top money in spite of falling land values, top agricultural consultants have confirmed.
Prices as high as €200,000/ac have been paid for agricultural land on the outskirts of provincial towns, despite claims that prices for CPO land had plummeted.
Even marginal land has made over €60,000/ac as local authorities scramble to acquire land to qualify for limited resources for road building projects.
Dublin-based Philip Farrelly said that the price paid is dependant on when negotiations began with the landowner or when the 'notice to treat' was issued.
"The price is determined by the market value at the time so for some people the notice to treat would have been issued three years ago although the sale might only be concluded now," Mr Farrelly said.
"That's also one of the problems with the system and some win and some lose."
Mr Farrelly added that while someone might do well if they sell land today at its market value of three years ago, the system could work against landowners where the notice to treat was issued in a depressed market.
Loss
"If land values rise again over the next few years, these people could find themselves at a loss and unable to purchase a similar property," he said.
However, Tralee-based consultant Eddie McQuinn insists that there is renewed urgency by local authorities to close deals with landowners.
"I think, while there is a realisation on the part of landowners that prices are back, there's also a definite urgency on the part of the county councils on behalf of the National Roads Authority to conclude deals," he said.
"County councils are jockeying for pole position to be in line for central funding and if the land has already been acquired, that's a major coup for them.
"There is a downturn in prices and provisions for zoning mean very little, but there's still fancy money being paid for agricultural land."
- Majella O'Sullivan
Irish Independent
