PHOTO: Sauvignon blanc. FILE
According to the Real Estate Institute, prices for sauvignon blanc vineyards in Marlborough have reached a new high of $400,000 per hectare this year, marking a significant increase of nearly 60% compared to previous records. Andy Poswillo, the director for Colliers in Marlborough, pointed out that this is a substantial jump from the long-standing average of $270,000 per hectare for the best vineyards.
Several factors have contributed to this surge in prices. The most sought-after vineyards consistently produce high-quality yields, and buyers are particularly interested in lands free from contractual obligations, allowing them greater flexibility with the fruit. Investors are considering both the rate of return and the vineyard’s location, with water availability and security playing a crucial role in determining land value. The price per tonne of grapes also influences the attractiveness of the land, with recent sauvignon blanc grapes selling for up to $2200 per tonne.
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These vineyard sales stand out as the sole “bright spot” in the rural property market, as overall farm sales continue to decline compared to the previous year. The decreased number of sales can be attributed to buyers adopting a cautious approach amidst higher interest rates, rising farm expenses, lower farm incomes due to adverse weather, and challenging economic conditions.
Notably, two established vineyards were sold at unprecedented price levels per hectare, signifying the surging demand for good-quality sauvignon blanc land in Marlborough. Additionally, the recent increase in wine exports and the free-trade agreement with the UK have instilled renewed confidence in the industry, according to Real Estate Institute rural spokesperson Shane O’Brien.
SOURCE: STUFF