Commercial farms remain a ‘scarce commodity' on the Scottish land market, despite an increase in the amount coming to market.
So far in 2023, there have been just 12 equipped farms over 400 acres publicly offered for sale across Scotland.
And Luke French from Savills Edinburgh office was not anticipating many more coming forward this autumn.
"We have seen some strong prices paid for good arable land across Scotland over the last 9 months which is a reflection of the scarcity of such units and the continued demand from a range of buyers," he said.
Scotland
"Well-equipped commercial farms and significant acreages of bare arable land are often being bought in competition by buyers with capital gains rollover funds who have a time-sensitive window for investment."
He added this had helped support average values, which had remained unchanged, but there were cases where prices paid were significantly more than averages.
See also: Agricultural occupancy houses on the market for longer
With a slowdown in the forestry planting market, coupled with fewer development land sales, reflecting the wider challenges in the housing market, Mr French expected to see the number of new buyers motivated by rollover relief to thin out.
Rising interest rates were also starting ‘dampening the enthusiasm' amongst those reliant on bank support.
He said good stock farms had performed well, particularly when they had good buildings and infrastructure but poorly maintained or underequipped holdings were more price sensitive than in recent years.
Farm sales
Presenting a farm for sale in lots to take advantage of the range of buyers and markets was a key consideration with many sales, with the intention of generating competition between those interested in lots and the whole.
"We have seen a number of upland farms presented in lots over the last 3 years - with the farmhouse and a modest acreage separate to the land to attract interest from buyers with different motives," Mr French said.
Lotting in strong residential regions such as East Lothian or Perthshire has proved to be an effective strategy for maximising price, he added.
While investors were not a dominant player in the Scottish market, there was a notable increase from those who regard farmland as a safe haven for capital in times of economic uncertainty.
Mr French added he expected autumn would be light of opportunities for buyers, to the benefit of vendors.
