An “outstanding” roadside holding extending to circa 95.7ac, just 15 minutes’ drive from Limerick city and a few minutes’ drive from Kildimo, with easy access to the N69 road linking Limerick to Foynes, is new to market.
“This fine farm at Ballyashea, Kildimo, contains circa 45ac of top-quality grazing land, laid out in easily managed divisions and is well fenced,” said selling agent John O’Connell of GVM Auctioneers.
“The remaining 50ac is of mature woodland and overgrowth. There is extensive road frontage with possible site potential, subject to planning permission. The land adjoins a lake to the rear. There is natural water supply,” he said.
“The Kildimo property would make an ideal holding for dairy, beef or hobby farmers. Also given the strong location, it is a really good investment opportunity.”
Market outlook for farm land
Tom Crosse, group property director, GVM Auctioneers, speaking at the launch of the Institute of Professional Auctioneers and Valuers farm price review for 2021 in January, said that the land market has remained very resilient and robust over the past two years.
This was despite the challenges of Covid-19, with the past 12 months in particular very strong.
“Many would argue that land prices remained static for the past 15 odd years and that we are only catching up with price growth in other asset types,” said Tom.
“I take that point, but the fundamentals in the farming industry must be right to support the overall market. Investors and business people will come and go. We all want the traditional farmers doing well.”
The volume of land sold last year was up 17%, said Tom.
“Many agents report that aspiring vendors are pushing on and placing holdings on the market to take advantage of buoyant market conditions,” he continued.
“The method of sale was quite different, with agents adopting the private treaty method or the new phenomena of online selling (OFFR) or the blended version of live and online selling (LSL.) This did not impact in any way on prices achieved.
“However, it has pushed us auctioneers to move away from the traditional methods and adopt systems that are now tried and trusted by sellers, agents, vendors and purchasers.
“Some commentators are suggesting that the online option is pushing up prices, with people now able to bid anonymously without the fear of upsetting a neighbour or maybe a long-term tenant. From an agent’s viewpoint it also takes the mystery out of it about how many bidders we may have. Deposits are paid in advance and all live bidders now have to register also in most cases.”
Around the country prices for grassland varied between €6,000 and €22,00/ac, depending on location, land quality, road frontage and facilities, Tom said.
“Dairy farmers were the main players in the market,” he added.
What is noticeable, Tom said, is the return of the business person to the market, seeking out nice compact holdings for investment or hobby farming.
“Land is perceived as a very safe haven for money, with purchasers happy also to take a much lower yield but that is tax-free rent with no real regulations or maintenance costs. Negative interest rates are also a big contributory factor,” he said.
“Demand for forestry land continues unabated with up to €6,000/ac achievable per net plantable area. Grazing land demand was very active in 2021 with noticeable increases evident,” said the group property director.
“Reduced stocking levels and a reduction in nitrates were probably the main drivers in the demand. Increased grazing prices and the tax incentives associated with leases are pushing more and more land down the letting route rather than on the market for sale.
“In my view, this may have an inflationary influence on values in the long term.”
Overall, the outlook for farming appears positive, which should ensure strong demand for selling and letting into the foreseeable future, contended Tom.
“Banks are amenable to lending into the agricultural sector which also should underpin demand.”
Kildimo farm
Guiding at €550,000, the Kildimo farm is for sale by public or online auction on Wednesday, March 23, at 3:00p.m in GVM’s Limerick city auction rooms, 25/26 Glentworth Street, Limerick. All intending bidders must pre-register.