New report shows average price of an acre of good quality land in Mayo is €8,225
SCSI auctioneers and valuers say land prices remained resilient last year despite the threat posed by Covid and are predicted to rise by 4% on average this year, underpinned by a rise in farm incomes as well as strong demand and reduced supply.
According to the Society of Chartered Surveyors Ireland/ Teagasc Agricultural Land Market Review and Outlook Report 2021 the average price in Connacht/Ulster of an acre of non-residential poor-quality land under 50 acres last year was €4,600 while the average price of an acre of good quality land was €7,900.
The report found that prices for good land under 50 acres in the region ranged from an average of €9,500 per acre in Donegal to €6,500 in Monaghan and for poor land from €5,750 in Monaghan to €3,250 in Leitrim, the lowest price in the country.
The average price of an acre of good quality land under 50 acres in Mayo was €8,225, the same as Roscommon and second highest in the region.
There was no data available for the average price of an acre of poor-quality land in the county.
The survey of 156 auctioneers and valuers from all over the country - which was conducted in February 2021 – found that demand for rented ground also remains strong with rents this year expected to rise by 6% in Connacht / Ulster, 8% in Leinster and 5% in Munster.
James Lee, Chair of the SCSI Rural Agency Group, said that lockdowns due to Covid had led to a reduction in the volume of sales.
“The inability to view holdings or physical auctions led to a significant increase in the number of sellers postponing plans to sell land.
"In our survey, over a third of agents (35%) reported a decrease in the volume of land sold in 2020 compared with 19% in 2019.
"Virtual viewing options have been available to sellers, but clearly many have a preference for more traditional auction sales.”
“In Connacht/Ulster average land quality is typically lower than other regions, tends to be available in smaller lots and is mainly for grass-based agriculture.
"While Covid has affected sales activity, it hasn’t affected output or prices and as a result farmer confidence about the future has been unaffected.
"The land market has shown strong resilience throughout the pandemic and agents believe prices will rise on average by 4% this year.”
“In the rental market, while Connacht/Ulster did report a decrease in prices last year – by 13% for grazing land – prices are expected to rebound by 6% this year, a little behind Leinster on 8% but ahead of Munster on 5%.
"The low level of supply is again an issue in the rental market, but its not Covid related. Here the issue is leases with twenty-four per-cent of agents reporting a decline in the volume of land leases in 2020 compared to just 8% in 2019 as more land is ‘locked up’ in long-term leases” Mr. Lee added.