29 Sep 2010

Wine market at a turning point - real estate agent

12:51 pm on 29 September 2010

A Marlborough real estate agent who specialises in viticulture properties, believes the wine property market is at a turning point.

John Hoare, who is head of Bayley's Marlborough, says there have only been five wine property sales in the past six months, but about 50 are listed on the market.

He says the viticulture property market is in a process of revaluing itself as land prices adjust to a drop in grape and wine prices.

The average grape price is now $1200 per tonne, nearly half what it was two years ago.

John Hoare says in 2007/2008 vineyards fetched between $200,000 - $250,000 per hectare but it's quite different now.

Mr Hoare says there is still plenty of interest from buyers in vineyard properties.

Last Friday more than 80 people attended the auction of Gravitas Vineyard in Marlborough.

Mr Hoare says while the receivership/mortgagee sale passed in at $2 million, negotiations continue with at least six interested parties who were unable to bid at auction.