Land sales increase by 30% in 2023 as Munster auctioneers report their 'busiest year'
The average size of a holding sold in 2023 increased slightly from 27 acres to 29 acres in 2023 while farms of less than 50 acres accounted for 90% of transactions.
Real Estate Alliance (REA) agents across the country saw an increase of 30% in land sales last year.
The amount of money generated increased by 32% on the 2022 figures, with a total of 2,661 acres of land sold for over €37.088m.
A survey of 17 REA agents involving 91 properties saw a slight increase of 1.5% on the per acre price paid with an average of €13,940 per acre paid in 2023, compared with €13,725 per acre the previous year.
According to the auctioneering organisation, cash buyers continued to dominate farmland sales with over 66% of land purchases funded out of cash reserves.
Local farmers accounted for 65% of farmland purchasing and when other farming customers were included, the proportion of farmer-buyers reached over 67%.
Buy-to-rent investors accounted for almost 9% of the market in 2023, but it is expected that this will decline substantially in 2024.
Forestry buyers make up 7.7% of those purchasing land while residential and development buyers make up a combined 5.5%.
22% of those who sold farmland in 2023 are described as ‘siblings divesting ownership after a holding period’, marking an increase of over 15% in this cohort from 2022.
At 15.4%, the number of farmers downsizing is equal to the percentage of farms being sold due to probate, traditionally the primary driver of land sales.
Sales undertaken to fund other enterprises accounted for 14% of transactions while 11% were intended to fund retirement with 6.6% of sellers moving out of farming.
Almost 8% of vendors were recorded as living overseas.
In 2023, mixed accounted for almost 32% of the farms sold by REA auctioneers while beef farms came next at over 28%.
Sheep and tillage holdings each accounted for less than 10% of sales with smallholdings coming in at 7.7%.
The amount of land sold for forestry stands at 6.6%.
The average size of a holding sold in 2023 increased slightly from 27 to 29 acres in 2023 while farms of less than 50 acres accounted for 90% of transactions.
The cost of rented land was one of the big stories of 2023 and the REA survey reflects this with over 83% of the grassland with entitlements making between €300 per acre and €500 per acre.
Commenting on the results, REA chairman John Stokes of Stokes and Quirke in Clonmel said that the "shortage of land, particularly in places like in south Tipperary, had an impact on sales and whatever sold achieved strong prices".
Nenagh auctioneer Eoin Dillon described it as the "busiest year in land" he ever had.
“There were often 10 to 12 dairy farmers vying for the same parcel of ground and lots of disappointed underbidders,” he commented.
In Co Meath, auctioneer Thomas Potterton said 2023 was the first year he ever had a 100% result at all auctions.
“Everything we brought to auction sold under the hammer,” he said.
In Co Roscommon, Seamus Carthy said a shortage of land for lease or purchase is an ongoing problem with much land tied up in long-term leases.
“Sheep farmers were very active in the market here with prices from €8,000 and €12,000 per acre depending on the quality of the land," Mr Carthy said.
