Down the gurgler | Wairarapa News | Local News in Wairarapa

Ten Wairarapa vineyards are among 96 nationwide that are on the market as tough times hit the wine industry and banks show a reluctance to lend to incoming buyers.

According to a real estate website, some of the listed Wairarapa wineries have been on the market for 18 months or more.

Website chief executive Alistair Helm said 96 vineyards were for sale across New Zealand but some real estate agents estimate the figure could be closer to 150.

Mr Helm said there was an average selling time of nine months nationally but the average selling time in Wairarapa was from 12-18 months.

"We've had 18 vineyards in the Wairarapa district listed with us since the beginning of 2007. About a third of the 10 properties now with us have been listed for 18 months or more and half for 12 months," Mr Helm said.

"The pace of turnover has slowed considerably."

Most of the Wairarapa vineyard properties on the website do not have asking prices, although vineyards and wineries now for sale in the region include Aylstone Winery in Martinborough for $298,000, Moy Hall vineyard in Martinborough (rateable value $1.2 million), and Mebus Estate in Carterton (capital value $2.75 million and land value $1.2 million).

"What our analysis has thrown up is that it's difficult right now to get deals across the line in the rural sector in general," Mr Helm said.

"Banks are reluctant to lend into the rural sector and they are demanding strong equity-to-debt ratios.

"What we're hearing is there's no problem getting buyers and sellers together but, even with well-funded buyers, banks aren't stumping up.

"We're hearing horror stories where the banks are almost gun-shy of any lending in some cases."

New Zealand Wines chief executive Philip Gregan described the industry slump as the "perfect storm" that began brewing after consecutive frosts from 2003-07 reduced harvests and forced grape prices up to $2400 a tonne.

"That then raised an expectation and some people based their business models around a certain price for grapes."

He said there was a glut of grapes on the market by 2008. A record 285,000 tonnes were crushed nationally as the global recession struck and banks began pressuring vineyards that had borrowed millions in set-up costs.

Set up costs for a vineyard are about $45,000 a hectare.

"It's affecting everybody and there are people trying to exit the industry in Wairarapa, just like everywhere else," Mr Gregan said.