50-65% of those in some key Napa
Valley spots such as Rutherford and
Howell Mountain.
Interest in New Zealand and
Australia wineries is particularly
high amongst the Chinese,
Americans and French, with global
demand rising for Sauvignon Blanc
and Pinot Noir.
In Europe, Chianti vineyards rose by
12%, followed by the Rhône Valley
at 5.6%. Buyers list those regions’
views, landscape, property type and
accessibility as important factors.
While France’s Bordeaux and
Burgundy regions are popular, the
dominance of large commercial
enterprises led lifestyle vineyard
buyers to turn instead to Provence,
Languedoc and the Rhône Valley.
They were drawn to those regions
by greater choice and proximity to
the Côte d’Azur.
Prices declined in Italy’s Piedmont,
South Africa’s Stellenbosch and
Chile’s Colchagua. Here, price
growth fell into negative territory,
declining by up to 14% on an
annual basis. It seems that global
economic sentiment has had a
bearing on buyer confidence and
the availability of finance is tight.
The report suggests that the price
falls in the Western Cape are attributable to strong harvests and an
oversupply of grapes. While in Chile,
the economy is slowing but capital
is still flowing into agricultural and
lifestyle investments.
In Italy there is a clear demarcation
between the best and the rest. In
fact even within Piedmont, the
Barolo region experienced growth.
Demand is focussed on those areas
where there is a quality product with
a strong reputation. Other regions in
the country with better results were
Brunello and Prosecco.
The report also points out that
the acquisition of vineyards is an
increasingly global affair but the
influence of overseas buyers varies
significantly from region to region,
Tuscany attracts the largest proportion of international buyers at 60%,
with some areas in Chianti and
Montalcino recording up to 80%.
Argentina’s Mendoza, which is home
to a large number of American,
Canadian and European buyers, is in
second place with around 50%
of buyers originating from outside
of Argentina.
Barossa Valley in Australia and
Bordeaux in France are at the other
end of the spectrum with foreign
purchasers accounting for only 10%
of buyers. Bordeaux’s low proportion of foreign buyers is attributable
to the dominance of commercial
owners and off-market domestic
sales while a slump in prices until
recently has deterred some buyers in
Barossa Valley.
Looking ahead, the presence of
Asian buyers will no longer be
confined to just Bordeaux and
Knight Frank predicts an influx of
Chinese money into Australia’s
Barossa Valley. The Chinese are also
eyeing opportunities in the U.S. and
New Zealand. As well, Vietnamese,
South Korean and Hong Kong
buyers are looking for vineyard
acquisitions.
Meanwhile, Americans, who have
traditionally looked at Latin America
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