The average price of land in Ireland has risen in 2018, according to the most recent quarterly report from Sherry FitzGerald.

The property firm calculated that the average price of land outside of Dublin stood at €9,275/ac, rising 230/ac or 2.5% from 2017 values.

Prices rose over the third quarter of 2018 also, up 0.6% from the second quarter of the year.

The study found that the midwest region saw the largest increase in price (1.7%) this quarter and singled out strong land values in Tipperary as a contributing factor to this.

The first nine months of the year shows the mideast region experiencing an almost 5% price hike.

Land values in the west fell by 3.7% in the first three quarters of 2018 and 1.3% over the last three months.

Land type

In terms of land type, prime arable land was the fastest growing land type in the quarter, with price growth equalling 0.8%. The price of prime grassland increased at a slightly slower rate of 0.7%, while marginal grassland increased by a more incremental 0.2%.

Both prime arable and prime grassland have grown by 1.9% in the first nine months of the year, while prime grassland has seen the largest increase over a 12-month period, at 2.7%.

According to Sherry FitzGerald, prices have been consistently rising since the end of 2016.

Sentiment

The study also reports that auctioneers confidence in the land market is slightly lower than the previous quarter.

It stated: “While 61% of respondents noted that buyer sentiment had remained stable in Q3, there was a slight uptick in the number of agents who reported a deterioration in confidence levels in the quarter.”

In their outlook, Sherry FitzGerald noted that Brexit, farm incomes, milk price and the extension of the stamp duty relief for young farmers as potential influencers on the 2019 land price.

The study

The study was conducted through a total of 51 Sherry FitzGerald countrywide members who provided values for different farmland types.

These values were based on actual sales, or likely achievable sales, in their area in the given quarter.

Each region is weighted, and values at the national level, excluding Dublin, are calculated based on the addition of these weights.

These weights are based off total value of farmland sold in each region according to the CSO.