Munster land prices buck the national trend

The milk price downturn could make it a challenging year for land sales, reports

THE price of land powered ahead in Munster in 2017, according to a Society of Chartered Surveyors of Ireland (SCSI) and Teagasc Land Market Review published today.

Munster land values increased by 11pc, but it was a different story in the east and west with land prices in Leinster back 4pc, while a decrease of 11.5pc was recorded in Connacht-Ulster.

The report forecasts a challenging year ahead for farm sales, with a 10pc drop in dairy farm incomes expected to weaken the hand of the strongest players in the market.

In addition, the SCSI study points out that the adverse weather conditions this spring will take a toll on profit levels right across the industry.

The strong performance of Munster land is due mainly to incomes growth and expansion in the dairy sector. A Teagasc review of milk prices contained in the report shows a net profit for dairy farmers of 15c per litre.

In contrast, land values in Leinster and Connacht/Ulster suffered a decline in 2017, with the west and north-west showing the greatest reduction where the most significant price falls were recorded in larger land sales. According to the study, the overall national price per acre was €8,308/ac for non-residential holdings.

Munster had an average price of €9,900/ac, with Leinster (excluding Dublin) coming in at €9,800/ac. Connacht/Ulster was well back the field at €5,500/ac.

As distinct from the other regions, the price of land in Munster increased across all types and, uniquely, the dearest