Marlborough was the primary contributor to New Zealand’s record 2022 grape harvest, which brought a welcomed 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, of which approximately 88 per cent was sauvignon blanc.
The total harvest represented a dramatic increase on last year’s number of 370,000 tonnes – a figure that was heavily impacted by adverse weather conditions.
Marlborough’s contribution to the 2022 harvest was incredibly impressive given the backdrop of Covid-19 and a notable labour shortage due to border restrictions.
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Andy Poswillo, a viticulture specialist and Director at Colliers Marlborough, says the harvest was a great outcome for local wine companies who were able to meet most of the ever-growing 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 throughout the country achieving coveted 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 notable transactions in Marlborough recently, including the sale of a prominent vineyard at 343 Awatere Valley Road for $14,250,000.
The property featured a 33ha sauvignon blanc vineyard, a four bedroom dwelling and sheds, and 20ha of bare land for further development. The new owners took possession in May.
“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 per hectare to $330,000 plus per hectare depending on location, variety, and yield history.
“Bare land with water suitable for development has been reaching $70,000 per hectare to $200,000 plus per hectare, although these opportunities are now somewhat limited.”
The demand for smaller-scale vineyards has also remained strong as people look to examine their lifestyle options.
“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.
“Predominantly we have seen the most interest in income-generating lifestyle properties, and 4ha to 8ha vineyards.
“The majority of these properties are conveniently located within 20 minutes of Blenheim’s CBD with recent sales ranging between $2,200,000 to $4,500,000, depending on the size, variety, and quality of the dwelling.
“Vineyards of this size tend to generate around $25,000 per hectare after working expenses with the higher yielding vineyards returning around $40,000 per hectare this season.
“We have sold many of these properties to people who have no experience in viticulture and employ reputable management companies to take care of the day-to-day running of the vineyard. This avoids the requirement of machinery and is ideal for absentee ‘hands-off’ owners or people in full-time employment.”
Poswillo says Marlborough still offers good value for money for all property types compared to other parts of the country and enjoys strong domestic and international tourist numbers.
“With the majority of the suitable land now planted in vines and the strong international demand for the region’s wine, the industry is sure to continue to perform for generations to come.”
- Article supplied by Colliers
