South Australian vineyard prices rise as 252 McLaren Vale acre site goes for A$10m

There are further signs that the price of vineyards in parts of Australia are well on the rise with news that a 252 acre site in McLaren Vale has sold for A$10 million.

The deal for a vineyard in McLaren Vale’s ‘dress circle’ is the latest in a series of acquisitions that will have property and real estate owners licking their lips. The $10m purchase covers three separate vineyards. The vineyard has chosen to remain anonymous.

Russell Iles of Knight Frank’s Agri Business unit said it was an important and significant sale for the region as it had attracted so much interest from both inside Australia and from foreign investors.

He told Daily Wine News:  “We’re noticing a growing demand for vineyards with a track record for high-quality production. South Australian wineries are renowned for consistently producing at the highest standard, and as such, they attract investors, both locally and from overseas.

“At $10 million, the sale achieved close to $40,000 an acre which is an excellent result. It’s a significant win for McLaren Vale and really sets the bar for future transactions.”

The site includes pemium-grade Shiraz and Cabernet Sauvignon and a range of in-demand alternate varieties. It also has its own water license. 

Knight Frank set up its own dedicated Agri Business division 18 months ago to concentrate on agricultural and viticulture properties. It has been able to sell 709 acres in McLaren Vale alone, around 17% of its available vineyard land. 

South Australia is responsible for just over 50% Australia’s total crop and produces 80% of Australia’s premium wine and in 2016 was valued at $951m