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Snooth User: Pari Wendy

Are chinese investors paying too much for vineyards in Bordeaux ?

Posted by Pari Wendy, Sep 17, 2013.

Official figures from SAFER, the french agency which records land transactions, shows that buyers paid on average 75,000€ per hectare in 2011.
However, there are some big regional differentials and disparity in price. For the majority of generic AOC land that accounts for almost 50% of the total area in Bordeaux, the average price per hectare is between 18.000 € and 25.000€, but it can go up very quickly, to 1.16M€ per hectare for a Saint-Emilion and 392.000€ per hectare for a Pessac-Léognan.
The prestigious 'appellations' are priced even higher : 2M€ per hectare for a Pauillac and 2.5M€ per hectare for a Pomerol.
Overpriced vineyard in Medoc :
Chateau La Gorce that I mentioned in my blog is located in the Medoc region and in 2011, the average price for a hectare was 35000€, knowing that chateau la gorce owns 45 hectares of vines that makes the price of the chateau at 1.5M € and even if we include the chateau/mansion, equipments, Cru Bourgeois rank etc etc, and some increase in market price in 2012 compare to the previous year, the price is still very far away from what the french owner of chateau la gorce was asking from the chinese buyer visiting the estate !!!!..a hefty price of 9M€.
But to justify this price the owner asked, he said the chateau is 'Cru Bourgeois' classification, that makes the rank of Cru Bourgeois very expensive to say the least : from 1.5M€ to 9M€, obviously a price exceeding the market price by manyfold.
But Chateau La Gorce is not the only one trying to convince a chinese buyer, like many others in Bordeaux now, they want cash out while it is still possible.


Reply by duncan 906, Sep 17, 2013.

Estate Agents will say anything to make a commission.

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