Chinese investors still keen on Bordeaux chateaux despite stock market woe

Purchasing wine property is being considered as a serious long-term investment by more Chinese investors, says specialist in Bordeaux real estate industry.

Despite the recent Chinese stock market crash that started in mid-June, Chinese investors’ interest in Bordeaux wine estates keeps growing.

‘Since coming back from the summer holiday, I had a non-stop schedule taking the Chinese clients to view the properties,’ Li Lijuan, China marketing director of Maxwell-Storrie-Baynes, the exclusive affiliate of Christie’s International Rael Estate, told DecanterChina.com.

‘It seems the stock market turbulence did not affect our business, and the investors will consider buying wine estates when they look for more stable and sustainable investment opportunities.’

According to Li, the rate of return on chateau investment in Bordeaux is 3% - 8% in general, and Chinese buyers are more serious and determined about their wine business than in the past.

‘Most of my clients told me that they have reserved the fund for the purchase and the Chinese stock market crash will not change their investment decision,’ said Li.

DecanterChina.com has previously reported that Chinese investors were ‘seeking better value for money, rather than focusing solely on the top appellations or grands crus estates’.

‘The sales of high-end fine wines in the Chinese wine market were hit hardly by the government austerity measures.’ Li explained, ‘on the contrary, the cost of production is €2-3 per bottle at the small-scale chateaux, and even the price is doubled after the wines being imported to China, it is still fairly cheap and having a broad market.’

A trade source familiar with the region told DecanterChina.com that currently there are around 400 wine properties owned by Chinese investors.