Kinsale scores sales hat-trick
The auction of a 16.5-acre farm at Ballynamona, near Dunderrow, is the second such sale within a month in south Cork, and it made €15,000 per acre through auctioneer Dan Fleming.
It followed the benchmark sale at Castlepark, Kinsale, on October 12, where 50 acres achieved €16,000 per acre through Joe McCarthy of Irish and European.
That in turn followed on another significant auction at Ballymacus, Hangman’s Point, where 20 acres of tillage ground made €13,250 per acre in mid-summer.
While the odd high-value sale is not an indication of a trend, on the basis of these three sales, it looks like the volume and quality of transactions has improved overall.
Improved activity could be seen as a signal of restored confidence in the country’s oldest industry.
Likewise, on the basis of anecdotal evidence, 2010 marks a return to lending by the major banks, albeit at loan to value ratios of up to 70%.
Notwithstanding the economic chaos all round, the agricultural land sector has not only held a line this year, but looks set to improve – barring a total collapse in the economy.
The two sales at Kinsale mark a return also to the pre-eminence of farmers in private and public transactions. In the case of the most recent sale at Ballinamona, Dunderrow, Kinsale, all four bidders were farmers, according to Dan Fleming, and while the buyer’s identity isn’t known, it’s likely that it was a local farmer.
There was a large crowd to witness the sale, and the property opened at a low €85,000 for the entire, which was increased steadily in €5,000 lots by four bidders.
When the property reached €205,000, it was formally put on the market, and was knocked down at €247,000, the equivalent of €14,969 per acre, to a Bandon-based accountant.
According to Dan Fleming, nearly 90% of the audience on the day were farmers.
