The 2021 Munster land market was almost a ‘shop’ compared to the catch-all auction scene in Leinster.
there were only 14 auctions, but they generated 10.461 million euros in revenue, 114 pc ahead of last year, as the amount of land sold under the virtual or real hammer increased by 37 pc to reach 854 ac. The price per acre rose 57% to € 12,249.
The average farm size sold was 61 acres, with one farm exceeding 100 acres. Nine farms were between 50ac and 100ac, and four were between 16ac to 50ac.
Four farms broke the $ 1million mark, with one Kerry property bringing in the most money and the highest price per acre: a 78.82-acre farm in Coolcorcoran, Killarney has been sold under the hammer by Tom Spillane for 1.55 million euros or 21,300 € / ac.
On its heels, a 79-acre farm in Crecora in County Limerick – the site of the 1991 Plowing Championships – grossed € 1.42 million or nearly 17,800 / ac under the hammer of Tom Crosse of GVM .
A 65-acre lakeside residential holding company at Coolbawn on the Tipperary shores of Lough Derg was sold by Eoin Dillon for 1.085 million euros or € 16,700 / ac.
A 76.5 acre organic pasture and tillage farm with a period house in Ballynonty, near Thurles, sold under the management of James L Murtagh’s Padraic Murtagh for 1.06 million euros.
Ten properties generated over € 10,000 / ac, of which nine exceeded € 12,000 / ac and two exceeded € 20,000 / ac.
The largest farm for sale was also the cheapest: 117 acres of mountain land in Ballymacarbry, Co Waterford made € 210,000 or € 1,787 / ac under the hammer of PF Quirke.
This reduced the average price per acre paid in Munster. When excluded, the average price would be nearly 14,000 € / ha.
Tipperary auctioneer Matthew Ryan described 2021 as a great year for land sales, with prices high from start to finish.
“I had a client who took a 37-acre farm off the market in 2020 and turned it over this year where it made € 485,000,” he said. “I think he got an extra € 100,000 in the meantime.
“There was a lot of money around because dairy farmers who converted to corporate status had cash reserves.
“As the price of renting land increased, many of them decided that it would make more sense to buy than to rent. ”
At auction and by mutual agreement, Mr. Ryan obtained between € 12,500 and € 20,000 / acre.
Tom Crosse admitted to being worried 12 months ago, but 2021 has turned out to be the best year in quite some time.
“There has been a 20% increase in the price of farmland,” he said. “This was driven by the dairy sector and the return of the business sector to the land market. They left in 2009, but they are back in force.
Fermoy’s Michael Barry agreed, but is worried about supply and prices in 2022.
“There is no fall in prices and demand, but with the cost of inputs compromising profits, there is concern,” he said.
Reflecting on the growth of online auctions, Mr. Crosse believes that the hybrid is the best method.
Tom Spillane, on the other hand, isn’t a big fan of the online auction, saying he prefers the personal touch.
In Clare, Diarmuid McMahon of Sherry FitzGerald McMahon, said that although volumes were low, prices were high and online sales were working very well.
“Farmers are used to online market auctions,” he said, “they like it and they like the anonymity of it.”
Everything they were selling, Mr. McMahon said, was beyond his guidebook.
“A 17.5 acre place with a period house to renovate near Liscannor cost € 357,000, it had been guided to € 235,000,” he said.
“Down the road, a 15 acre piece of land that we expected to earn € 85,000 made € 170,000. That’s over 11,300 € / ac, a remarkable price for Clare.
“There were a lot of cash buyers, not necessarily farmers. “