Demand switches to land with forestry potential
THE Connacht counties, along with Donegal, Cavan and Monaghan, showed a substantial decline in the number of successful land auctions this year — falling from 17 to nine.
There was a 66pc drop in the area of land sold under the hammer for the first six months of the year, falling from 1,067 in 2015 to 356ac for the January to June period this year.
A similar percentage applies to the drop in the level of income generated from land sales, which fell from €6,260,000 for the first six months of 2015 to €2,166,750 this year.
Unlike other regions there was a slight increase in the per acre price, which rose 3pc, increasing from €5,866/ac last year to €6,086/ac this year.
This figure is probably somewhat skewed by a bumper price of €17,000/ ac paid for 17ac of land at Ballybay in Co Monaghan.
The largest farm sold under the hammer in the early part of 2016 was a 180ac parcel of forestry and grazing ground at Craggagh, Balla, Co Mayo that sold for €750,000 under the direction of Morans of Castlebar.
The dearest land sold in the region was the aforementioned 17ac grass farm at Legacurry, Ballybay in Co Monaghan.
The reseeded, ‘top class’ grazing ground was bought by an auctioneer believed to be acting for a dairy farmer when it sold under the hammer of local agent Phillip Ward.
The average size of holding sold in Connacht/Ulster in the first six months of 2016 was 39ac.
Caution
Roscommon auctioneer John Earley has noticed a distinct change in the market and a softening of prices. “I am certainly finding the bigger farms harder to get away and prices are certainly softening,” he maintained.
“I would say land is back €1,000/ ac. And while last year I was quoting €7,000 to €8,000/ac for top quality land in this region, this year I’d be quoting €6,000 to €7,000,” he said.
Mr Earley said the banks were certainly more cautious and buyers were not as bullish.
“However, I find the demand for investment land for planting is increasing and people are looking for average land rather than poor ground for it,” he said.