The latest analysis from property network Sherry FitzGerald indicates that the downward price pressure on land values continued into the third quarter of 2016 with a 1% decrease recorded from July to September. This brings the yearly decline to date to 2.5%, which is in sharp contrast to the 1.6% price increase experienced during the same period last year.

The average price paid for land nationally during the third quarter was €9,550/acre – down from €9,800/acre for the same period last year. With the exception of the Midlands and Dublin, land values fell in all other regions. The greatest price drop was recorded in the southwest at 2.1%, bringing the annual fall so far in the region to 5.7% or an average price of €10,050/acre. Land in the border region fell by 1.4% in the third quarter or by 4.4% year on year.

In terms of land type, arable land is coming under the most pressure. Down by 1.5% in the third quarter or by 3.2% since the start of the year, the average price for tillage land nationally stands at €11,350/acre.

Prime grassland fell quarterly by 0.9% or annually to date by 2.9% to bring the average to €10,700/acre. This compares significantly with the 2.4% growth rate recorded for the first nine months of last year.

The quarterly fall for marginal-type grassland is more moderate at 0.5%, bringing the average price for this type of land to €6,600/acre.

Over 80% of the respondents involved in the latest Sherry FitzGerald report believe that the level of activity either remained steady or actually fell during the third quarter. Income volatility for farmers, the weakening of sterling and the uncertainty surrounding Brexit are some of the factors that are contributing to a more sober market at the moment.