13/04/1999 - 22:00

Wine land value soars

13/04/1999 - 22:00

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THE wine regions in the south-west of WA are flourishing, with increased expansion and soaring land values.

THE wine regions in the south-west of WA are flourishing, with increased expansion and soaring land values.

Real estate company Herron Todd White director Garrick Smith said rapid expansion of the industry commenced in late 1960s and early 1970s with the Margaret River region being established as a producer of premium wines.

Originally focussing on Rhine Riesling, Hermitage, Cabernet Sauvignon, Chardonnay and Pinot Noir varieties there are now 47 established wineries with 1,200 hectares under vines, producing a far greater selection of wines.

“Demand for the wineries is also high as evidenced by the acquisition of Devil's Lair by the Southcorp Group and Fermoy Estate by French interests,” he said. “Values for the underlying rural land have also increased and currently range from $10,000-$25,000/ha and establishment costs are running at $25,000 to $40,000/ha.”

Mr Smith said the success of the Margaret River region has assisted in the establishment of other localities, including Mt Barker, Franklyn River, Pemberton and, more recently, in and around the Harvey townsite.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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