Farm Ireland

Monday 18 December 2017

Prices for land still dropping

Majella O'Sullivan and Neil Brady

PRICES paid for land have continued their downward spiral, falling to a national average of just €7,235/ac so far this year.

The price survey carried out by the Farming Independent reveals that a total of 4,802ac were sold for €3.47bn at public auction in the first seven months of the year.

The national average for the previous year was €8,880/ac.

The results are based on properties that were sold at auction and reported in the national farming press. It does not include properties withdrawn from auction and sold for an undisclosed amount.

The national total was substantially reduced by the sale of a 1,019ac holding at Gaoth Saile, Bangor Iorras, Co Galway, which made only €662,000 -- or a little under €650/ac.

However, last year's national average of €8,880/ac was also massively dragged down when a 1,540ac property in the Burren, Co Clare, sold at auction for €751/ac in November last year.

Another significant sale for this year was the disposal of the 1,220ac Bergerin Estate in the North Sloblands, Co Wexford, for €5.75m.

Best prices so far for this year were achieved in the commuter belt counties of Dublin, Kildare, Wicklow and Meath, where an average of €13,120/ac was paid for land.

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When compared to this, values more than halved for the remainder of Leinster, where the average price per acre fell to just €6,734/ac.


Munster fared better where land values maintained at €8,238/ac, more than €1,000 above the national average.

Connacht's dismal average of €715.50/ac was distorted by the Galway holding.

So far this year a total of 46 auction sales took place that were reported in the farming press. A high proportion of these were executor sales.

This compares with a total of 95 auction sales for last year.

Of the 46 properties sold for the first seven months of the year, 11 were greater than 100ac and 11 were larger than 50ac but less than 100.

Irish Independent