Recent data has spotlighted two wine regions in South Australia as top performers in the national property market. Both Penola and the Barossa Valley have demonstrated significant growth, making them attractive areas for potential buyers. With a booming wine industry and increased interest from urban markets, these regions are poised for continued success.
According to the Ray White Regional Report, Penola, known for its premium Cabernet Sauvignon, saw house prices surge by 44.4 percent over the past three years and an astonishing 89.4 percent increase in just the last year, with the average price now reaching $357,500. Vanessa Rader, head of research at Ray White, noted that the town benefits from the economic activity generated by the nearby Coonawarra wine region, without the high cost associated with vineyard-adjacent properties.
The Coonawarra area, recognized for its focus on premium red wines, has recently experienced a revival in trade with China. Exports surged from virtually zero to 59 million litres within six months after the removal of trade duties. Rader emphasized this resurgence as a key factor contributing to Penola’s appeal.
Karly Honner, a selling agent for Thomas DeGaris & Clarkson, explained that interest in the region has grown significantly. “Before COVID, about one in thirty inquiries came from Adelaide or Melbourne. Now, roughly 50 percent of my calls are from city markets,” she stated. The region offers a variety of amenities, including excellent restaurants, cellar doors, and cafes, enhancing its attractiveness to potential residents.
Penola is not solely reliant on the wine industry; it also benefits from other sectors such as agriculture and forestry. Honner highlighted the community’s robust infrastructure, stating, “For a small town of 1,600 people, we have a hospital, three schools, and a childcare centre.” With a property management portfolio of over 100 properties, she noted a consistent vacancy rate of around 1 percent, indicating high demand for rental properties.
The Barossa Valley, often regarded as Australia’s premier wine region, also features prominently in the report. It accounts for 3.7 percent of the national grape crush and displays economic diversity beyond wine production and tourism. Rader pointed out that this volume of production creates jobs in logistics, processing, and other support industries, ensuring a steady demand for property.
The region’s successful combination of high-volume production and premium export positioning has benefited from renewed access to Asian markets, further solidifying its economic stability. As interest continues to grow, both Penola and the Barossa Valley are expected to remain key players in Australia’s wine and property sectors.
With these developments, South Australia’s wine regions are not only enhancing their reputations for quality wine production but also emerging as sound investments in the property market.
