south african vineyards raise a glass to their success
News Posted On: 27 July 2011
Shrewd investors in South Africa are building up their property portfolios by buying repossessed properties which are often sold at 30% to 40% below market value, and property in Stellenbosch, Constantia and Kloof is increasingly attracting foreign buyers.
Some experts now feel that the first green shoots of a recovery in the property market are becoming apparent, and expect this slow improvement to continue throughout next year, with a return to a normal healthy property market by the middle of 2013.
At the moment many of the investment properties in South Africa are being bought by high net worth individuals, and they aren't just investing in foreclosures, as four the largest wine estates in Stellenbosch have been sold to foreign investors.
Apparently wine estates are in high demand in Stellenbosch, thanks to the regions renowned wines and fertile soil. At the moment South African vineyards sell for around $80,000 per hectare, but this largely depends on location and the scale of the wine making business.
According to a recent report by Knight Frank, the demand for vineyards has increased significantly over the past five years, with potential owners falling into one of two categories. There are those who want to produce wine on a commercial scale, and those who are just looking for a holiday home with a few hectares of vines.
The general price of vineyards is dictated by land values and bulk wine prices, although those vineyards producing higher quality wines are tending to hold their value better than boutique wineries whose values are affected by the price of bulk wine.
View property for sale in South Africa
Written by Les Calvert
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