As the year comes to a close, Property Director at GVM Auctioneers TOM CROSSE chats to Jane Mayne at LSL, providing valuable insight into the market over the year that was, and his forecast for 2023.
What has the supply of land for sale been like over the last 12 months in your area?
We have seen a huge increase in land sale availability during 2022. Some stand out at high land price sales in the early part of the year moved many landowners to sell while the market was good. Some had been considering a sell option, but definitely many began to think and say the market was very ripe and time to cash in the chips. Land prices up 15/20% in Co limerick in 2022. Three sales of €20k per acre recorded. Highlight sale of the year for GVM was €2.85m for 145 acres at Clarina, Co. Limerick in February 2022.
What has the supply of land to rent been like over the last 12 months in your area?
Amount of land available to rent very scarce. Most lets are now in long term leases where landowners can avail of tax breaks, hence very little roll over of new rental stock coming to the market. The high price per acre also tempted landowners to sell rather than hold and rent.
A number of progressive farmers in our area are opting to develop facilities rather than move towards land purchase. They are content to rent land with no long-term bank commitments or repayment pressure.
How do you see land prices moving over the next 12 months and any issues determining this?
Land prices should remain strong. EU nitrate directives, stocking level requirements, exceptionally high milk price, and the return on business people to the land buying market are all underpinning demand.
What are the primary factors which have determined land prices over the last 12 months in your area?
Low/Negative interest rates. Banks willingness to lend into farming. Dairy farmers hugely active. Planned new road network in Limerick pushing farmers to plan for the future and have replacement land in the pit.
Any other relevant trends?
Many astute business people are now seeing land as a very safe have in terms of investment. Even in the turmoil of the economic crash in 2008, land values remained fairly consistent. Many are using the tax breaks associated with land as a conduit to transfer wealth to the next generation.
It is clear that the effects of Brexit are now being felt – have you noticed any trend over the last year in relation to this?
It is been mentioned, but not really a big factor in peoples mind when it comes to buying or renting land. We do not see it as having any negative effect.
How have the prices of milk, beef, lamb, tillage and pigs performed during the year and/or outlook for 2023?
The view in this part of the country is that milk and beef prices will hold up. Worldwide production is down, so demand should continue unabated for the immediate future.
Are there any new challenges for the sector which may affect land values or the sector in general?
Obviously increasing interest rates and upwards inflationary pressures are a factor. Climate change, gas emissions and CAP reform are also topical. Much increased cost of production, namely feed, fertiliser and fuel prices all may influence the market ibn 2023.
The mood among the farming community is one of positivity and buoyancy.
Land value per acre December 2022?
Minimum price for grazing land €7,500.
Average price for Forestry €6,500.
Average price for Tillage €21,000.
Average price for Grassland €14,000.
Letting Value per acre December 2022?
Minimum price for Grazing Land €200.00.
Average price for Tillage €300.00.
Average price for Grassland €275.00.
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hi there
would like to do an auction, with creswick avenue, burnley,, bb11 2nz
this is with , reeds rains
she phoned us , and said , they reduced price, because of celling falling down,,,
can we put bid in , they said , its 79.000,, can we put a bid in for this
Good morning Mrs. Denise, could you contact us through our telephone number +353 57 930 0591? Thank you.