Here’s cheers: good news for Barossa vineyards
Australia’s wine industry is raising a glass, with at least 10 Barossa Valley vineyards changing hands in just three months.
In some good news for winemakers, Colliers International is reporting a surge of activity in the famous South Australian wine region.
Colliers has sold 13 vineyards in the region this year, with nine of them sold to domestic investors.
Jesse Manuel, from Colliers’ Rural & Agribusiness team, said there were also signs of improvement in the value of vineyards.
“The prices being achieved for larger vineyards are around $50-60,000 per hectare, while smaller vineyards are achieving around $80-90,000 per hectare,” Mr Manuel said.
“There is significant interest from Chinese buyers, as evidenced by the recent sales of the Menge Road and Ebenezer vineyards to Chinese purchasers.
“Enquiry from local wine industry participants is also beginning to return and strengthen, as the Barossa Valley entrenches itself as Australia’s most famous and sought-after wine region.”
Among the sales were the Turkey Flat Vineyard with 5.6ha of planted vines ($532,000), the Fuller’s Vineyard with 21.69ha ($1.3million) and the Barossa Valley Vineyard Portfolio made up of four properties with about 100ha of vines sold for $60,000 per ha.
The Barossa Valley, about 60km northeast of Adelaide, is famous for its red wines and is home to the likes of Penfolds, Jacobs Creek and Peter Lehmann.
It has been a challenging few years for the nation’s wine industry, thanks to a strong dollar, sluggish domestic demand and a global oversupply of wine and grapes.
Colliers’ Tim Altschwager expects interest and activity in the Barossa Valley to continue into next year.
“While the Australian rural property market has remained relatively subdued over the past 12 months, there has been solid interest in specific sectors including the wine industry,” Mr Altschwager said.
“The wine sector has seen volumes exported to the UK, US, Canada and China continue to grow, in line with the rising middle class around the world, and hence why buyers are looking at these properties.”