Decanter World Wine AwardsNew Zealand vineland value drops 60%, but no takers
- Wednesday 20 July 2011
Prices across the country have come down by as much as 60% but there are still properties that have been on the market for several years.
John Hoare, viticulture specialist for the Marlborough branch of real estate agent Bayleys, told Decanter.com, 'Prices [for established vineyards] are as little as NZ$100,000 per hectare (ha), whereas in 2007 they were NZ$250,000.’
However, there are few parties interested in buying cut-price vineland. In Central Otago, some vineyards have been on the market for as long as eight years.
Bayleys' local agent Trevor Mackay estimated a hectare of established vineyard would cost around NZ$60-$65,000 per hectare but admitted nothing had sold in the past two years.
‘It costs about NZ$60,000 to fully develop a vineyard so any buyer would be getting it at cost,’ Mackay said.
He added that he had vineyards on his books that had ‘dropped 50% in value since they went on the market’ – and that there were many more vineyards for sale than appeared on agents’ websites.
‘Many producers don't want to show publicly that their vineyard is for sale as it might affect their existing wine sales.’
However Matt Thomson, a consultant winemaker based in Marlborough, does not believe there will be a rush to purchase with many producers unwilling to expand and banks reluctant to lend.
‘I think we have hit the bottom in terms of demand for vineyard land. I would not be advising people to rush out and buy now because I think we will see those prices hold for 12-18 months,’ he said.
Have your say!
Kenneth Onish
July 21 12:30
Hi Rebecca:
It was pretty clear that planting 25,000 acres or so in the Awatere Valley and o including them in the Marlborough appellation. It was only a matter or time that severe consequences for the New Zealand wine industry would occur. Whether or not it was done to make a quick buck by some multi-natinnals or locals, it was the New Zealand wine board that approved their inclusion into the Marlborough appellation and they are the ones to wear the blame. Pretty sad stuff!
Sharon Alderson
July 21 01:55
Quoting estate agent Trevor Mackay of Bayleys in the article on NZ vineland value in regards to Central Otago is reckless, as he has very little knowledge of costings to establish a vineyard nor the value of a producing vineyard especially with pinot noir grapes. He does a dis-service to the hard work put in to produce wine by his comments. Estate agents in this area are out of a job or have left due to the lack of sales caused mainly by the recession.