FRANCE (Bordeaux) - The prices for renowned vineyards in Bordeaux are steadily increasing. Official figures substantiate: the average price increased by 10 percent last year due to a steady demand from investors. According to the SAFER agency, which registers all the transactions, purchasers have to spend 76,000 euro per hectare on the average.
The prices vary, however, depending on the location and the position: One hectare on a usual site AOC Bordeaux, no matter if planted with red or white grapes, is available at as few as 15,000 euro. In comparison to the prices from 2010, this means even a decrease by 1,000 euro, whereas the price for one hectare on a top location in Pauillac increased by 65 percent in 2011 alone.
The prices on the left banks went up and up; in Pessac Léognan, for instance, the price has blown up to 330,000 euro per hectare. In the neighborhood, in Graves, the prices are outright modest, here you have to pay 27,000 euros per hectare.
“The price erosion originates from two factors”, Michael Baynes, real estate expert at the Maxwell-Storrie-Baynes agency, specialized on traditional real estates. “On one hand, it’s neighboring châteaux that purchase real estates in order to increase their portfolio of vineyards, on the other hand it’s investors from Asia, mostly from China, who purchase above all castles in Bordeaux, no matter if they are also producing wine or not.”
According to Mr. Baynes, his agency purchased a total of 35 châteaux in 2011, furthermore a series of single vineyards or parcels. On the right banks, in the AOC Pomerol, an average price of 900,000 euro per hectare has been attained, in the AOC Saint Emilion about 200,000 euro, and in the AOC Sauternes about 50,000 per hectare.
Compare: in 2009, a Burgundy Grand Cru cost as much as about 3 million euro per hectare, classified with white Premier Cru about 1.1 million euro, with a red Premier Cru 450,000 euro per hectare. On hectare in the AOC Bourgogne costs 31,000 euro. (red.yoopress)
