news generational. There are plenty of 20-year overnight successes but I can’t think of any two-, three- or five-year success stories.”
FEWER BUYERS Langley said while there are buyers around, there is normally only one or two for each property or business sold, not the big numbers from a decade ago. He did say the more sophisticated commercial producers and the wineries are doing a bit of cherry picking in the market, with grapegrowers looking to expand and maximise economies of scale The wine industry seems to be feeling a bit better about itself, with some good long-term contracts about, especially for Cabernet and Chardonnay, but that hasn’t trickled through to prices for land and vineyards. Right now they are half the price they were in the heady days – areas we saw selling at $60,000 are battling to make $30,000. In Western Australia we actually separate the price of the land from the vines and/or the vineyard because the value of the land is always strong. Most of our interest is from the eastern states although there is some Asian inquiry. But despite all the talk I think only two properties have sold to Chinese buyers in the past 10 years.
Brian Moulton Acton South West, Margaret River, Western Australia
and wineries securing supplies. “Of course there is also the offshore interest in the market, wanting grape production to take back to their countries and bottle and market their own products there,” he said. “The Chinese are on everyone’s tongues these days, and there has been some criticism about the risk to the integrity of Brand Australia but in our view the right Chinese partner can add substantially to a winery’s prospects. “As a rule, they have a much better distribution model into their own market We have seen a dramatic increase in sales since February although prices are still low. The falling dollar has also helped with potential overseas buyers, and this area also appeals to them because of its easy access to Melbourne. The bulk of our market has been foreign money but just lately we are getting more local inquiry and I think people are realising prices aren’t going any lower so if they are going to get into the market they’d better do it now. At any one time we would only have three or four properties listed at most, it’s not as if the whole Yarra Valley is for sale, and all the ones we have are under contract. There are some coming up in the spring I know of and it will be interesting to see where the market is by then.
Mark Sutherland RT Edgar, Yarra Valley, Victoria
than anyone here trying to set up from scratch.” Toby Langley. Phone: (08) 8364 5600. Email: info@ gaetjenslangley.com.au.
‘We have sold a few properties lately and are still selling some. At the moment we are finding the Australian market is our strongest with the Chinese taking a bit of a back seat. But either way, prices haven’t improved at all and are just bouncing along at what we hope is the bottom of the cycle. Good properties have good interest but if the vines shouldn’t have been planted the property is worth land value only.
Alan Jurd Jurd’s Real Estate, Cessnock, NSW Business is steady enough both sides of the river but prices simply aren’t improving. In fact I would say in my patch, Riverina and northern Victoria, the market has actually softened a bit. The interest we do have is more for the vines than for wineries and while I have a few blocks on our books there has not been much demand. I went to a sale the other day, for a stone fruit block, and there wasn’t a single bid.
Liam Ryan Landmark Swan Hill, Victoria
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8 Grapegrower & Winemaker
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September 2013 – Issue 596