Galway’s farm prices fall sharply in last year

The price of farmland in the West fell by nearly a quarter last year as compared to 2013, according to the results of a sales survey carried out by leading estate agents Ganly Walters.

Land prices in the West and North-West regions fell by 22.6% in 2014 with an average price per acre of €6,622 achieved over the course of last year, compared to €8,557 in 2013.

The biggest drop in land prices came in the 50 to 99 acre farm size categories, down from €9,772 per acre in 2013 to €5,005 an acre in 2014.

By contrast, land in the smaller parcel category of 20 to 49 acres enjoyed quite a lively trade with an average price of €7,964 last year, up nearly €1,500 on the 2013 price of €6,487.

Three land sales across the region in the 100 to 199 acre category made an average price per acre of €5,824 in 2014, up 16% on the 2013 figure of €5,022 per acre.

More land though is coming on the market, according to Ganly Walters, with 16,849 acres changing hands in 2014, a 25.4% increase on the volume of sales in 2013.

Robert Ganly, Managing Director of Ganly Walters, said that despite the drop in prices last year as compared to 2013, the average price was still 23% above ‘the trough’ of €5,386 per acre in 2010 during the height of the financial collapse.

He told The Connacht Tribune that he expected land prices to increase by 10% across the West of Ireland in 2015, but he added that farmland still was good value in region.

“There are a lot of part-time farmers in the West of Ireland and I would expect a price increase in the region of 10% in the coming year.

“The average price paid across the whole country for farmland in 2014 was €10,526, a slight increase in the national figure from 2013.

“Nationally the 2014 average is 20% above the trough of €8,667 per acre recorded in 2010, but is still as much as 38.4% below the peak price of €17,081 per acre recorded in 2008,” said Robert Ganly.

The survey also showed a massive difference in land prices across the western and north-western region as compared to farmland prices in the Dublin/Kildare/Wicklow region where the average price per acre was €14,064 in 2014.

According to Robert Ganly, signs of price stability in different regions including the West and Midlands were good news for farmers planning to expand over the coming years.

“At a time of uncertainty in the beef and dairy sectors, stable land prices can provide some assurance to those farmers seeking land in order to attain productivity increases,” said Robert Ganly.

The West/North-West region in the farmland price survey included counties Galway, Mayo, Sligo, Leitrim, Roscommon, Donegal and Clare.

Ganly Walters said that the land price survey was based on the prices disclosed for 212 farmland sales totalling 14,241 acres across the country both by auction and private treaty.

A further 2,613 acres that changed hands at undisclosed prices was factored into the figures at ‘the average disclosed price’, bringing the total estimated value of the national farmland sales in 2014 at €177.3 million.

Last year, Ganly Walters handled the sale of Tulira Castle in Ardrahan that carried a price tag of €6.5 million when advertised – the final sale price wasn’t revealed.