Savvy investors raise a glass to Marlborough vineyard success
Marlborough was the primary contributor to New Zealand’s record
2022 grape harvest, which brought a welcome boost for grape growers and wineries and has fuelled demand for viticulture properties in the region.
The harvest produced 532,000 tonnes of grapes with 414,649 tonnes from Marlborough. Approximately 88 per cent of that was sauvignon blanc.
The total harvest represented a dramatic increase on last year’s
370,000 tonnes – a figure heavily impacted by adverse weather.
Marlborough’s contribution was impressive given Covid-19 and a labour shortage due to border restrictions.
Andy Poswillo, a viticulture specialist and director at Colliers Marlborough, says it was a great outcome for local wine companies who were able to meet most of the evergrowing international demand.
“The majority of wine from the region has been exported and logistical issues resulted in delays getting wine to international retailers, but the 2022 vintage is now being enjoyed around the world. With the majority of the 2022 vintage sold, it bodes well for 2023,” Poswillo says.
“New Zealand is recognised internationally as a premium wine producer with several companies and varietals achieving international accolades. The success of Marlborough’s sauvignon blanc has resulted in strong demand for vineyards in the region.”
Poswillo has brokered a number of transactions recently, including a prominent vineyard at 343 Awatere Valley Rd for $14.25 million.
The property featured a 33ha sauvignon blanc vineyard, fourbedroom house and sheds and 20ha of bare land for further development.
“Wine companies have been active in purchasing large-scale vineyards to secure ongoing supply along with investment syndicates, superannuation funds, and private investors all looking for vineyard acquisitions,” Poswillo says.
“Canopy prices have ranged from $180,000/ha to $330,000-plus/ha depending on location, variety and yield history.
“Bare land with water suitable for development has been reaching $70,000/ha to $200,000-plus/ha, although these opportunities are now somewhat limited.”
The demand for smaller-scale vineyards has also remained strong. “The pandemic has made remote work more common and, like many regions, Marlborough has experienced significant interest from people wanting to escape the hustle and bustle of city life with a move to regional New Zealand.
“We have seen the most interest in income-generating lifestyle properties, and 4ha to 8ha vineyards.
“The majority of these properties are located within 20 minutes of Blenheim’s CBD with recent sales ranging between $2.2-4.5 million. Vineyards of this size tend to generate around $25,000/ha after working expenses with the higher yielding vineyards returning around $40,000/ha this season.
“We have sold many of these properties to people who have no experience in viticulture and employ management companies to take care of the day-to-day running of the vineyard. This is ideal for absentee ‘hands-off ’ owners or people in fulltime employment.”