Industry Update IPAV’s Property Price Barometer

Slowing Increases in Residential Property Prices IPAV’s Residential Property Price Barometer published in February. Covering prices achieved by auctioneers in the latter half of 2022, for three and four bedroom homes and two-bedroom apartments, found an overall price increase of a 2.44pc by comparison with a 6.35pc figure for the previous six months. As auctioneers well appreciate, beneath a headline figure there is a far more nuanced picture, with the top three increases in the three-bedroom category taking place in Wicklow, Longford and Cavan. In the four-bedroom category the top three were Dublin 1, Wicklow and Dublin South County. A few areas showed a price drop, especially Donegal which has been experiencing major problems with mica a ected builds. However, given the shortage of supply and the very strong and growing level of demand one would have to anticipate overall figures being in positive territory for the first six months of this year. In the Barometer there was evidence in December of returns of an upward movement over the previous months. This could see prices for the first half of 2023 coming in around the 2pc to 3pc level.

Forecast for 2023

2% 3% -

Strong Demand Continues to Drive Land Price Increases

IPAV’s Farm Report in January captured just how strong demand continues to be for both purchasing and leasing of land. This applies throughout the country even though some areas are achieving €25,000 an acre, with others as low as €7,000. Prices have gone from an average of €8,750 an acre when the report began in 2016 to €12,231 in 2022. Land leasing prices have grown to as much as €500 an acre in some areas during 2022.

Changes to the Common Agricultural Policy are taking place this year – in particular, the non-clawback on Single Premiums will be eagerly watched to see what impact it will have on prices. With regard to the methodology for valuing land, the return to EVS (European Valuation Standards) – something IPAV has championed for some considerable time –is a very welcome development. It brings the highest standard of rigour to the land valuation process. And it has the benefit of a European wide experience. The standards are regularly reviewed, tested and updated. IPAV is very grateful to our panel of experts who compile the report every year under the editorship of Philip Farrell.

Elsewhere, it will be interesting to see if the Coillte deal with Gresham House will go ahead. It’s somewhat disappointing to learn from recent media reports and government announcements that much of the 12,000 hectares involved in the new fund will encompass existing private woodlands rather than new a orestation lands. On the thorny issue of re-planted land, it’s very di icult for famers to agree to put land into forestry knowing there is no premium income to be gained on re-planted forests following the first tree fell. It means leaving farming dependants stripped of income until the trees are felled after a 30-year growing term.