According to the latest report released by Knight Frank, the Global Vineyard Index, which compares the price performance of vineyard land across key winemaking regions, saw the price of vineyards increase on average by 6.8% in the year to June 2013. The report also highlights the growing Chinese demand for vineyards.
Key highlights of the Global Vineyard Index 2013 report:
• Lifestyle vineyards are becoming a popular alternative investment for buyers in both the Northern and Southern Hemisphere
• Mendoza and Tuscany have seen the largest rises in vineyard values in 2013, recording annual growth of 25% and 20% respectively
• The price of vineyards in “new world” locations such as Argentina, New Zealand and Chile have recorded some of the strongest increases
• Spain has experienced the largest decline, with vineyard hectares down by 20% since 2000
• Italy and France experienced similar falls, down by 15.3% and 11.8% respectively
• New Zealand and China by comparison, have seen a 164% and 90% increase in the number of hectares covered in vineyards between 2000 and 2012
Chinese Demand
The growing presence of Chinese oenophiles in Bordeaux has captured the headlines in recent years. Alexander Hall of Vineyard Intelligence comments on the recent “influx”, “According to the Safer Aquitaine Atlantique, Chinese buyers purchased 27 properties in the Gironde area in 2012, covering approximately 525 hectares, 15% of the total surface area that changed hands. This was in addition to 14 properties acquired in 2011 and 6 properties acquired prior to 2011. These are certainly impressive figures when you consider that the first purchase of a Bordeaux estate by a Chinese investor was as recently as 2008 – but the French still dominate the Bordeaux market.
“With the exception of Château Bellefont-Belcier in Saint-Emilion, most Chinese purchases have been of relatively low-key estates, primarily in the Bordeaux, Bordeaux Supérieur and Côtes de Bordeaux appellations. Although French buyers are also active in this sector, their activity is concentrated on well-established estates, typically in the more prestigious appellations.
“Some Chinese owners are motivated by genuine commercial returns, others are tempted by the allure and prestige of owning a French chateau and vineyard. There’s anecdotal evidence to suggest some vineyards recently acquired by Chinese buyers are back on the market”.