From the Franschhoek vineyards to a place in the Stellenbosch sun, buying in the Cape Winelands makes great investment sense.
To the traveller, the great swathe of the Western Cape hinterland unfolds, vista after breathtaking vista, like an enticing tourism video. Indeed, the craggy mountains, fertile valleys and storybook country towns of the Winelands do attract thousands of visitors every year – to festivals that showcase a cornucopia of the area’s finest culinary offerings and to sporting events that give competitors and spectators alike the chance to experience its awe-inspiring scenery at close quarters.
Winelands Property Options
But, increasingly, the Winelands is also attracting property buyers intent on becoming permanent residents. These include retirees and empty-nesters, of course, but also a growing number of families in search of a wholesome lifestyle and environment in which to raise children, entrepreneurs seizing the opportunity to set up new businesses and investors looking for a healthy return on their real-estate assets.
Undoubtedly, part of the attraction to this, the country’s viticultural capital, is that South African wine exports are at an all-time high. Wines of South Africa (WOSA) reports that wine tourism contributes around R4,3 billion annually to the country’s tourism revenue. Add to this the fact that Winelands estates still offer good value, even more so when compared to the wine regions of France, Italy or the Napa Valley. According to Seeff Winelands principal, Pierre Germishuys, a weakened rand and continued economic uncertainty in Europe have further fuelled the increased interest in Cape wine farms from both local and foreign buyers over the past few months.
From the boutique wine farms of the Franschhoek Valley, which are priced from just over R20 million, to top wine-brand estates such as Klein Constantia, Lanzerac and, more recently, Val de Vie and Constantia Uitsig, that sell for upwards of R100 million, there are options aplenty for well-heeled buyers. And, when you consider the astronomical prices that trophy homes in Cape Town’s top-end residential suburbs command, owning a vineyard of your own may not be such a far-fetched idea.
As wine tourism is one of the fastest growing and most lucrative sectors of the global tourism market, Christie’s has launched the world’s first global advisory service for buyers of vineyard estates in the world’s most sought-after wine regions, including South Africa. ‘Vineyards By Christie’s International Real Estate’ brings together the auction house’s fine-wine experts and the network’s luxury-property specialists to offer a discreet consultative service for prospective vineyard-estate investors.
‘Vineyard markets in sought-after locations are often small and discreet,’ says Christie’s vineyard-property specialist Michael Baynes. ‘It is not uncommon for more than half of our vineyards to be privately listed and not advertised at all. Without expert guidance, buyers never even know that they are on the market.’
Zen and the Art of Winemaking
The valley between Paarl and Franschhoek is home to several upmarket security estates, among them Val de Vie wine and polo estate, the site of the first Chinese investment in the SA wine industry. Perfect China, a 51% shareholder in Perfect Wines of SA, recently purchased the wine cellar at Val de Vie as well as the attached 25 hectare wine farm and historic manor house dating back to 1783.
The cellar facilities will be used to produce wines under the L’Huguenot brand, which has already sold almost 3 million units in China in the past two years and is getting set to enter the markets in Malaysia, Thailand, Hong Kong, Indonesia, Singapore, Taiwan and Vietnam.
Average Price Guide to Vineyard Estates
- Paarl Valley R400 000 to R600 000 per hectare.
- Franschhoek R1 million to R1,2 million per hectare.
- Stellenbosch R800 000 to R1 million per hectare. Wine farms that produce less well-known brands in the Stellenbosch area now sell for R40 million to R45 million, those with hospitality facilities for R60 million to R70 million, and estates that produce topend brands for R150 million to R300 million.
Find out more about Wines of South Africa at www.wosa.co.za
Find out more about Vineyards By Christie’s International Real Estate at www.christiesrealestate.com/vineyards
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