Miah McGrath, Chair of the SCSI’s Rural Agency Group; Director General of the SCSI, Áine Myler and President of the SCSI, Colin Bray.
The SCSI/Teagasc Land Market Review and Outlook 2018 results have just been published and has found that land prices in Leinster have decreased by 4%.
Land values rebounded in Munster across all categories with average increases of 11% while the biggest increase of 17% was reported in the 50-100-acre category.
The report also suggests that there has been an increase in demand linked to a 30% rise in milk prices.
“The situation in Leinster was not as positive with values dropping in all categories by an average of 4%,” said Miah McGrath, Chair of the SCSI’s Rural Agency Group.
“Prices for medium sized holdings – 50 to 100 acres – recorded the biggest falls.
“Holdings with a residence fell by 4.5% while those without a dwelling fell by 8%.
“For holdings over 100 acres the figures were 3% with a residence and 6% without, while for holdings up to 50 acres the falls were 4% and 3% respectively.”
Meanwhile in Connaught/Ulster the report recorded the most negative land market developments in 2017 where values decreased across all land categories and in some cases by almost 20%.
“The biggest decrease reported was for transactions in excess of 100 acres where holdings with a residence fell by 15.5% and those without by 18.5%,” added Ms McGrath.
“For medium sized holdings the falls were 13.5% with a residence and 15.5% without. Smaller holdings recorded the smallest declines – 5% with a residence and 2.5% without.”
She also says the declines in Leinster and Connaught/Ulster may be due to more localised issues.
“In Connaught/Ulster the holdings are traditionally of a smaller size and the fact that these holdings recorded the smallest declines suggests that local farmers are looking to bring their farms up to the 100 acres plus mark.
“It’s unusual to see land values in Munster surpass those in Leinster, albeit by a very small margin.
“This underlines the strength of the Munster market but also possibly reflects that we are now seeing more realistic pricing in Leinster. Some surveyors in the province are seeing strong demand for both smaller holdings – from locals – and for large holdings - from outside interests – but finding softer demand for medium sized holdings.”