Cheerful lift in land prices
The latest light to shine on the property market is very flattering indeed — but is it correct? According to this land price survey by Edward Townshend of Colliers International, the average price per acre in the country has increased by 9% in the first six months of this year, compared to 2010.
And while that’s great news, it has to be said that the survey is anecdotal in its model and is based on results in newspaper reports of sales for this year.
According to the report, of the four provinces, there was no overall change in land prices in Leinster and Ulster, but a 6% growth was registered in Munster and a whopping 21% spike in sale prices logged in Connaught.
If you were to tease that figure apart, it could be said that rarity of quality land sales, or even the incidence of land sales in the west, can lead to statistical spikes and a 21% increase was hardly registered in the days of the Celtic Tiger.
But we’re not going to quibble, are we? Oh no. Any news like this, even from the less than scientific analysis of a sales report, should be welcomed with religious fervour. Investment in land is investment (literally) in our country.
There is a fairly sound basis for betting on land, according to Edward Townshend: “High prices are currently being realised for agricultural commodities across all enterprises. The result is that the farming sector is performing particularly well at the moment and many farmers are looking to step up production and, therefore, require an increased acreage to do so.”
The report was compiled from a total of 52 land sales and the total acreage transacted was 2,275 acres, with a total value of €21,662,000.
