Land prices in West still lag behind
LAND prices in the West of Ireland continue to lag behind the rest of the country ‘coming in’ below €6,000 for most farm sizes, according to a major survey published last week.
The Society of Chartered Surveyors of Ireland (SCSI) and Teagasc showed that the average price for an acre of land [up to 50 acres] in the Connacht/Ulster region last year was €6,163.
When bigger land lots were sold, the price dropped even further in the West – €5,710 to €5,821 in the 50 to 100-acre bracket – and €5,350 to €5,260 for the 100 acre + category.
The survey showed that land prices in the Leinster area [excluding Dublin] were well over twice the figures achieved in the west.
Farmland up to 50 acres with residences in Leinster averaged €12,711 per acre – without a house the average price still came in at €10,608.
Land prices in Munster also continue to be significantly more than in Connacht. Average land price for non-residential holdings [up to 50 acres] in Munster was €9,970 2015 – with a house they were over the €11,000 per acre mark.
According to report, there was a general price decline in land prices in Connacht/Ulster for the second year running.
“Prices fell in this region by between 5% and 10% depending on the land holding size. In stark contrast to the other two regions, prices in Connacht/Ulster are now below those observed in 2010.
“The only notable exception [in Connacht/Ulster] is lands up to 50 acres without a residence, which increased by 10% in 2015, and is now more or less on a par with values recorded in 2010,” the survey states.
According to John P. Murphy, of Murphy and Sons Auctioneers SCSI Western Region, the agricultural land market in the West has been very active in recent years mainly because there has been very little land available to buy.
“While things seem to be improving a bit, this is unlikely to translate into any notable changes in values mainly due to the difficulties potential buyers experience in securing finance and the equity required.
“You can achieve up to €7,000 an acre for really good quality land in parts of the North and North-West of the country, while the bottom end of the market is being propped up forestry values.
“Where forestry values are involved, there is a strong degree of interest from investors and equity funds. In this area, prices of between €3,500 and €4,000 per acre are common,” said John Murphy in the survey.