Estate agencies in Bordeaux have noted a rise in the number of Chinese investors selling off vineyards in the area, offering hope that some may be snapped up for a bargain.
In some years, Chinese investors have represented around 10% of foreign buyers of Bordeaux vineyards.
However, since the Chinese government imposed strict currency restrictions in 2017 to stop money leaving the country, they are now more likely to be sellers than buyers.
“It has become more difficult for Chinese people to invest outside China, and investing in a wine-making business needs a lot of capital,” Li Lijuan, who works for Vineyards Bordeaux estate agency and specialises in the Chinese market, told The Connexion.
“There are probably around 50 properties on the market now being sold by Chinese owners, and they often say it is the difficulty of getting money out of China to the properties which is the reason for the sale.
“I know of other Chinese chateau owners who have told me they are just waiting for better prices before they, too, will try and sell.”
However, other Asian groups, including ethnic Chinese citizens of Singapore, Malaysia and Indonesia, are still interested in buying in Bordeaux.
“They are often interested in wine, visit the area as part of a European holiday, and then realise that they, too, can have their own Bordeaux vineyard,” said Ms Li.
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Estimates of the number of Chinese owners at the peak of their interest in Bordeaux vary between 150 and 200, and they bought around 3% of the total vines.
Ms Li said some of the Bordeaux vineyards now being sold by Chinese owners represented real bargains.
“Some are being put on the market for half the price of what they were bought for.”
This château, with a guide price of €750,000, is due to be auctioned in DecemberCredit: J Benassaya-Jolis
Could I find a bargain for sale?
While there are success stories, with some vineyards owned by Chinese investors benefiting from new equipment, skills and seeing their wines increase in value, there have also been disasters.
The most emblematic is Château Latour Laguens, which was sold in 2008 for a reported €2million to a Chinese company, Longhai International Trading Company.
At the time there were ambitious plans to turn the 19th Century neo-mediaeval chateau into a wine-tasting centre with upmarket guest rooms.
The 30 hectares of vines would also see investment to make luxury wines.
Now, however, the dream is over and the chateau is reportedly up for sale by auction, without the vines, with an asking price of €150,000.
It is not uncommon for vineyards to be sold by auction. In December, two properties in the prestigious Saint-Emilion area were due to be auctioned by notaires. The starting price of one was €750,000, including a large country farmhouse with pool, two flats, vineyard buildings and 3.7 hectares of vines.
The second property does not have any living accommodation but has a winemaking building and 1.9 hectares of vines classified as Grand Cru, for a starting price of €650,000.
Bordeaux wines have long had a history of foreign investment – a recent survey showed owners from 55 countries had vineyards in the region.
Overall the region, like others in France, is seeing some parts of the wine industry struggle, and in 2023 it was agreed that around 10% of vines should be pulled up with government help.
Ms Li said that for some Asian buyers, the chance to buy a real Bordeaux chateau for far less than the price of an upmarket flat in Beijing or Shanghai might have been a driving force, without buyers necessarily taking into account the ongoing cost of making wine.
When wine properties are sold, it is not usual for wine made by the former owner to be included in the price, and it takes around two years before investment in the vineyards sees any return from wine sales.
Selling wine to China has also become much more difficult in recent years.
Imports of foreign wines into China fell by 60% in volume between 2017 and 2023, partly because of less favourable taxes.
Another reason is that China now grows more vines – 785,000 hectares – than France, and much of the wine drunk in the country is now home-grown.
At the same time the amount of wine drunk in China has fallen from a peak reached in 2017.
Estimates are that just 1.5% of Chinese people regularly drink wine.
This has even prompted some Chinese vineyards to try and sell their wines in France, so far with limited success.
