South Africa’s wine regions rising in value: new data reveals top performers – realestate.com.au

Of the four wine regions in South Africa, two of the four wine regions in the country have been identified as ‘outstanding performers’, offering value purchases in proven areas with a secure future.

Wine production is big business in Australia – the 2025 grape harvest of 1.57 million tonnes produced enough wine to fill more than 400 Olympic swimming pools, whose bottles, if lined up end to end, would circle the Earth 13 times.

To produce that much wine you need workers, and these workers have to live somewhere.

Ray White’s Regional Report data shows that two esteemed wine production regions in South Africa are among the four ‘outstanding performers’ across the country: Penola and the Barossa Valley.

Ray White, head of research Vanessa Rader, said Penola, which serves as the commercial center for the famous Coonawarra wine region, was known for its premium cabernet sauvignon.

Home prices here have risen 44.4 percent over the past three years and 89.4 percent last year to $357,500.

“The city benefits from the economic activity generated by one of Australia’s most respected wine regions, without sacrificing prices for neighboring vineyards,” she said.

“Coonawarra’s focus on premium red wines has benefited significantly from the resumption of Chinese trade, where exports grew from virtually zero to 59 million liters in six months following the abolition of duties.”

Vanessa Rader, head of research. Image: supplied

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Sales agent for Thomas DeGaris & Clarkson Karly Honner said interest in the region had increased dramatically.

“Before Covid-19, about one in 30 calls would be from someone in Adelaide or Melbourne, and now about 50 per cent of my calls come from a city market,” she said.

“We are above average when it comes to the amenities we can provide, so we have excellent restaurants, cellar doors and cafes.

“The viticulture here is exceptional – they call it Australia’s other red center.

“Every time a red Coonawarra comes to the table, you know it will be of high quality.

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She said interest in the region was not just driven by the wine industry.

“There are many other industries that support this, such as agriculture and forestry, and for a small town of 1,600 people we have a hospital, three schools and a childcare center,” she said.

“We do property management for over 100 properties and in my lifetime our vacancy rate has always been about 1 percent. It’s very difficult to get a rental property because there are jobs here.”

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The Barossa Valley, perhaps the jewel in the crown of the country’s wine regions, was identified in the report as a solid market player – it represents 3.7 percent of the national popularity – with economic activities beyond wine production and tourism.

“This volume creates employment in the logistics, processing and support sectors and supports consistent real estate demand,” Ms. Rader said.

“The combination of volume production and premium export positioning in the region has benefited greatly from the renewed access to the Asian market.”

– with Lydia Kellner