The values of some Marlborough vineyards are returning to levels not seen since before the Global Financial Crisis, but a local agent is warning that prices have stalled. The average price of a hectare of sauvignon blanc vineyard is $250,000, below that $300,000 rate of 2007, although that figure was considered inflated.
“There’s still some new development going on but prices are cooling a little and the word around the market is they won’t be going up in a hurry,” said Bayleys’ Kurt Lindsay said.
Growth has been partially spurred on by ‘mum and dad’ investors, who are buying up the smaller blocks of property for between $2 million and $5 million.
“Some corporates have been buying up the Wairau Valley where they’ve been looking to develop bare land blocks but it becomes marginal when you get 50 kilometres inland because of altitude and temperature.”
“The emphasis is still on sauvignon-growing properties with minor varieties like pinot gris and pinot noir for making rose,” Lindsay said. “Chardonnay always remains popular.”