Tipperary land bucks the trend in quiet Munster market
The land market in Munster has been quiet in 2017. Gone are the heady days when the prospect of a quota-free milk regime sent dairy farmers rushing to their bank managers.
The number of acres sold at auction in the province in early 2016 shrank by 45pc and it went down by another 27pc this spring.
However, the prices paid for land sold under the hammer have increased by 25pc with an acre of ground now averaging €10,304 compared to €7,670 a year ago.
The increased value of land can be seen in the contrast between price and volume; while the volume of land sold at auction in Munster went down by 27pc the amount of money generated by these sales went down a mere 1.6pc.
The largest transaction in the province involved a 217ac farm with a period house at Fortwilliam, Borrisoleigh that sold under the hammer of Vincent Ryan for €2.2m. The sale represented a price of €10,000/ac.
In further evidence of the return of the investor/developer to the farmland market the highest per acre price paid was given for land with outline planning permission on the outskirts of Ennis in Co Clare.
In an auction conducted by Sherry FitzGerald McMahon, €390,000 or €22,608/ac was paid for the land at Shanaway Road, Ennis with a local businessman winning the day. In the Kingdom a 51.8ac farm at Farranfore made €12,000/ac in an auction conducted by Tom Spillane.
Tom Crosse of GVM Limerick is not surprised at the results of the survey in terms of land volumes and prices saying there are customers out there for good land but auction is not the preferred route.