21 Oct 2011

Doubling of vineyards up for sale

10:18 pm on 21 October 2011

About one in eight Marlborough vineyards is now on the market as continuing low grape prices force growers to sell up.

The number of properties for sale has about doubled in the past two or three years, as grape prices went from about $2400 a tonne to less than $1200 for sauvignon blanc.

Vineyard real estate specialist John Hoare says at least 65 properties in New Zealand's biggest grape-growing region are on the market, but there are few buyers.

Mr Hoare, who owns a vineyard, says the low returns mean some growers are now virtually working for nothing.

Valuer Dave Stark says many of the current sellers are facing huge losses - even supposing they find a buyer.

Some paid $250,000 per hectare for a prime area vineyard four years ago but now they can only expect about half that.

New Zealand Winegrowers chairman Stuart Smith believes grape prices have probably bottomed out and it is just a matter of when they start to rise.