'Cash is king' in land market, report claims
CASH continues to be king in land purchase. A review of the first half of 2012 in the agricultural land market by Jordan Auctioneers reported that few sales conducted by the firm this year needed credit.
"This may be as a result of land sold in the boom years or monies obtained from a road scheme," said Clive Kavanagh, who compiled the review.
Of the 1,000ac sold by Jordan Auctioneers so far this year, approximately 900ac was sold for farming purposes.
In an interesting observation, Mr Kavanagh notes that younger people are returning to the land, and adds there is a "natural enthusiasm" among parents and older generations to acquire land to provide the additional scale needed for a profitable enterprise in the future.
He the agricultural land market as strong, with land in Kildare and its environs averaging between €12,000 and €13,000/ac.
"To date, we have sold almost 1,000ac of land across a wide geographical area. Interest levels and enquiries have been in excess of those over the last number of years, but land needs to be correctly priced and valued at the outset," Mr Kavanagh added.
In the review, Mr Kavanagh identified a number of common features found in the market this year.
He said public auctions was proving to be the most effective and popular method for the sale of agricultural lands. Reflecting the trend of the last number of years, he said farmers were "the sole drivers in the market", and there was little, if no, interest from other parties such as business people, speculators or developers.