Market Reports The current wine investment market is influenced by many factors, including brand definition, economic conditions, vintage variation, past market performance and buyer confidence. Langton’s regular quarterly Market Reports distil these factors into leading-edge market opinion and analysis.

The Investment Market

First Quarter 2006

The first quarter 2006 has seen solid results at Langton’s. Over 14,000 lots were offered by Langton’s during January and February 2006. Volume of bidding remained high even during the holiday season illustrating a strong market. Clearance rates increased during February reflecting an increase in general buyer participation. Prices firmed up almost right across the board on the back of a more positive outlook.

Grange – an important market indicator – has in recent times achieved relatively stable prices and good clearance rates but little forward price movement. In February strong bidding and increased competition saw top vintages including 1976, 1983 and 1986 achieve well above (10-20%) average price realisations. The magnum and rare Grange market remains sluggish.

Buyer enthusiasm for blue chip wine stocks – especially Langton’s Classified Australian wines – illustrated strong sentiment for strong regional or winemaking provenance. The cult wine scene, however, continues to unscramble as more speculative buyers drop out of this overvalued market. There are too many vendors wanting unrealistic prices and not willing to recalibrate their expectations. An aggregation of identical vintages could force prices down beyond current market expectations.

During this quarter, we have been contacted by an increasing number of Heritage Fine Wine and Wine Orb investors regarding the valuation and potential disposal of their wine through Langton’s. Unfortunately, the high level of levies and the structure of the secondary market will make it almost impossible for investors to recoup a reasonable percentage from their initial investment.

The overall size of inventory, a limited market, unrealistic vendor expectations and the physical and financial costs of overall warehousing and logistics make the sale of ‘own brand’ and unproven vintages through auction difficult. While vendors with established wines such as Penfolds can expect reasonable results, many of the wines offered to wine investors have absolutely no track record of performance.

Many of these wines are likely to be sold through other avenues rather than auction. The bargain hunters can expect plenty of bounty in future months but it is unlikely that the ultra-fine secondary wine market will be hugely impacted by this debacle except for specific wines.

The imported wine section of Langton’s catalogue continues to attract intense interest with most lots attracting the higher end of estimates. Burgundy and Champagne are attracting very good prices at the moment especially for top houses and vintages.

Overall we expect a relatively solid market over the next six months.

All prices listed below are per bottle, include Buyer’s Premium and in AUD$.

Some of the highlights in January and February –

2001 Clonakilla Shiraz Viognier $84
1999 Noon Reserve Shiraz $73
1999 Yalumba Octavius Shiraz $99
1998 Rockford Basket Press Shiraz $130
2001 Jasper Hill Georgia’s Paddock $94
1998 Hardy’s Eileen Hardy Shiraz $101
1994 Penfolds Grange $335
1996 Penfolds Grange $380
1998 Penfolds Grange $508
1998 Wendouree Shiraz $127
2000 Leeuwin Estate Art Series Chardonnay $105
2000 Giaconda Chardonnay $145
2002 Giaconda Chardonnay $161

Langton’s offered over 6,000 lots of fine wine during March. The overall market has strengthened reflecting an increase in market sponge and volume of bidding. Despite the malaise in the retail sector, auction realizations for some blue chip stocks are on the ascendancy especially for recognized vintages.

Grange prices have moved significantly illustrating renewed confidence. Price realizations have risen by more than 10%. Even lesser vintages are achieving solid results. The release of 2001 Grange – on the retail market at around $500 a bottle – will inevitably strengthen prices as buyers recognize the overall value of Grange auction prices.

The push/pull effect seems to be coming into play once again. Hill of Grace and Rockford Basket Press prices are enjoying stronger prices as a result of ascendant Grange realizations. Buyers at this level will look for value within recognized ultra-fine wine vintages. Certainly Exceptional classified wines are enjoying very positive and buoyant prices – unseen for several months.

All prices listed below are per bottle, include Buyer’s Premium and are in AUD$.

Imported price realisations are robust, especially for blue chip Burgundy, Bordeaux and Champagne. Highlights include Trimbach Clos St Hune Riesling $288, 1999 Domaine Ramonet Montachet $1384, 2003 Coche Dory Corton Charlemagne $771 bottle, 1995 Etienne Sauzet Montrachet $798, 2003 Mongeard Mugneret Echezeaux $323, 1997 Domaine Leroy Clos Vougeot $714, 2002 DRC Richebourg $979, 1959 Ch d’Yquem $1382, 1961 Ch Latour $3922, 1982 Ch Latour $1519, 1995 Ch Grand Puy Lacoste $163, 2002 Ch Lafite Rothschild $318, 1982 Ch Pichon Lalande $508, 1999 Guigal La Turque $644 and 1990 Dom Perignon $351.

We expect prices to remain firm for ‘must-have’ vintages and Langton’s classified stocks.

Some highlights of Langton’s Exceptional Classified wines include –

Penfolds Grange – Exceptional

1990 - $561
1991 - $370
1996 - $370
1998 - $520
2000 - $605

Henschke Hill of Grace – Exceptional

1990 - $461
1991 - $407
1996 - $438
1998 - $440

Rockford Basket Press Shiraz – Exceptional

1990 - $122
1991 - $166
1996 - $135
1998 - $118
2000 - $82

Wendouree Shiraz – Exceptional

1991 - $115
1996 - $94
1998 - $138
2000 - $94

Cullen’s Cabernet Merlot – Exceptional

1996 - $127
1998 - $104
2001 - $110

Moss Wood Cabernet Sauvignon – Exceptional

1991 - $133
1996 - $154
2001 - $110

Mount Mary Quintet – Exceptional

1990 - $195
1996 - $140
1998 - $168

Penfolds Bin 707 Cabernet – Exceptional

1990 - $163
1991 - $140
1996 - $140
1998 - $144

Bass Philip Reserve Pinot Noir – Exceptional

1998 - $283
2000 - $356

Leeuwin Art Series Chardonnay – Exceptional

2001 - $93
2002 - $92

Giaconda Chardonnay – Exceptional

2001 - $120
2002 - $150

For more comprehensive results please search our database of Australian and imported wine price realisations for over 40,000 vintages and 20,000 wines. Prices are quoted in Australian dollars and updated after every sale. They can be found in the Wine Tools section of this site at Price Guide.

Second Quarter 2006

Langton’s continued to maintain healthy price realisations and clearance rates during the second quarter 2006. Bidding volume – which is a barometer of overall buyer sentiment – is very strong at the moment despite turbulence from the Heritage and Wine Orb wine investment debacles.

The upper end of the secondary wine market is enjoying unprecedented levels of interest. Prices have moved forward in the last quarter. Must-have vintages of imported and Australian wines are astonishingly buoyant perhaps illustrating the narrow focus and dwindling shelf space given to ultra-fine wine on the Australian primary market.

Specialist wine buyers have flocked to Langton’s resulting in a broad church of enthusiasm and genuinely interesting results. Vendor expectations and a shift in buyer interest have seen the ascendancy of Piedmonte’s Gaja, Voerzio and Conterno at the expense of traditional Tuscan superstars Antinori Solaia, Ornaliaia and Sassacaia. Solid buying patterns are emerging for Spanish cult and more recent vintages of German Riesling. Dr Loosen, Egon Muller and Max Ferd Richter are enjoying tremendous support. Indeed Alsace Riesling from tip top producers especially Trimbach Clos St Hune have been making over 50% of high estimate. Champagne – a cornerstone of the Australian secondary wine market – is also strong with prices falling within mid to high estimates.

The secondary wine market has been awash with interesting parcels of Rhone wine in recent years. While some producers attract sluggish demand, others bring substantial interest. The wines of JL Chave have remarkable magnetism perhaps illustrating their rarity value in Australia. Guigal’s special bottlings – such as La Mouline and Ex Voto – also have excellent currency. Results for Grand Cru Burgundy (blanc) have reached a point of fantasy. Prices for the Montrachets of Louis Jadot and the Pulignys of Leflaive and Sauzet are in la-la land. Top red Burgundies are profoundly beating the odds – 2002 Richebourg Domaien Gros achieved $369 and a magnum of 2001 Romanee Conti Domaine de la Romanee Conti (which went to an American buyer) achieved $6913. 2002 Armand Rousseau Clos St Jacques Gevrey Chambertin went for $438.

The market for prized vintages of Bordeaux is robust with strong bidding levels and price realisations. 2003 is now reaching the market. Considering the extraordinary hype surrounding the expensive 2005, we expect prices to pull up in the immediate future. Highlights included 2003 Les Forts de Latour ($150), 2003 Haut Brion ($749 – the 2005 is selling primeur at around $950) and 2003 L’Angelus ($255). The under-estimated but classic 2004s – when they hit the market – will be seen as utter bargains.

The ultra-fine Australian wine market is also in good shape. Penfolds Grange –a key market indicator – has firmed up considerably over the first half of 2006. Bidding volume and clearance rates have also increased pointing towards are stable and deep market. While most vintages are achieving relatively steady prices 2000 Grange appears to be experiencing some volatility ($411). This may in fact point to a market correction; $500 in recent times is out of whack with historic Grange price trends. However this is a small vintage and prices could well climb back. The lacklustre response of primary buyers to the release of 2001 Grange should also be taken into consideration.

Barossa Valley Estates E&E Shiraz, Bass Phillip Reserve Pinot Noir, Best’s Thompson Family Reserve Shiraz, Clonakilla Shiraz Viognier, Henschke Mount Edelstone, Jasper Hill Georgia’s Paddock, Mount Mary Quintet, Parker Coonawarra Estate First Growth, Penfolds 389 Cabernet Shiraz, many vintages of Wendouree and Yalumba Octavius all performed really well. The remarkable 2000 Mount Pleasant Maurice O’Shea Shiraz achieved $82 illustrating that buyers will support Hunter Valley Shiraz when it’s good. 2004 Noon Reserve Shiraz was a top performing cult wine ($99) with excellent bidding support. Prices for 1996 Three Rivers ($1900) and a magnum of 1993 Three Rivers ($3107) bounced back to the pre-dot.com market. A combination of unrealistic expectations and moderate interest left the very rare 1962 Penfolds Bin 60 without buyers. Newcomer 2004 John Duval Entity Shiraz received an impressive debut price of $51 a bottle and ten percent above high estimate.

Within all strong markets are weaknesses. Rising stars Glaetzer and Kalleske have struggled to win a critical mass of support in 2006. Primary buyers are not keeping the wine preferring the possibility of quick profits on the secondary wine market. These traders are notoriously unsentimental with unrealistic expectations in a falling market. The trouble is that there are too many of them resulting in a theoretical glut. If the wines do not clear downward price pressure comes into play.

Saturation point also comes when collectors have filled their cellars and buyers start to dwindle. There is only a certain amount of wine people can drink in a year. Both the highly likeable Mount Langi Ghiran Langi Shiraz and d’Arenberg The Dead Arm were sold through investment brokers as investment type wines. The demise of Heritage and Wine Orb has led to a larger pool of supply which may create some downward pressure in forthcoming months. These will sell through eventually and may represent excellent buying.

It is true that there are thousands of bottles of wine from the Heritage fiasco. However most of these labels hold little or no cachet in secondary wine market. Buyers do not want to bid on over priced, unknown or second rate wines. There will be bargains in some secondary wine market arenas but at Langton’s our focus is largely on ultra-fine Australian and imported wines. We are advising investors to drown theirs sorrows rather than take a huge hit.

Overall the secondary wine market at Langton’s is going very well. Both Sydney and Melbourne sales attracted unusually high percentages of last minute bidding – propelling the overall value of sales by between 20 and 25%. This points to a very high level of live bidding towards closing and strong underlying buyer sentiment. While some wines are in the doldrums, others are enjoying strong support.

Every auction has is own life with natural market swings based on number of bottles available and demand. Shiraz remains the most impressive of all performers. Margaret River and Coonawarra Cabernet are both performing reasonably well but rarely are they achieving above mid estimate. The most unusual record must go to the 2004 Woodlands Reserve du Cave Barrel Malbec which surely must claim the highest price ($70) achieved for an Australian Malbec on the secondary wine market!

The specialized wine auction market however is a numbers game. In 1999 Langton’s Fine Wine Auctions – Australia’s leading fine wine auction house – was faced with a remarkable dilemma caused by the rapid worldwide deployment of internet technology and the arrival of new competitors. As the internet bubble subsided and mainstream companies reassessed the potential of this electronic medium, Langton’s embarked on an ambitious and innovative development programme which would provide Australian fine wine collectors with extraordinary access to the secondary wine market including “second-to-none” research and data provided by its team of experts.

Langton’s investment in internet technology and information has resulted in a much larger pool of well-informed buyers and a transparent market place. Participation rates are on the ascendancy. Notwithstanding the negativity in primary wine markets we expect Langton’s secondary wine market to remain consistent over the forthcoming quarter.

Some of the highlights at Langton’s in the second quarter 2006 –

2003 Bass Phillip Reserve Pinot Noir $208
1998 Best’s Thompson Family Reserve Shiraz $115
2000 Brokenwood Graveyard Shiraz (Magnum) $217
1999 Grant Burge Meshach Shiraz $135
2001 Jasper Hill Georgia’s Paddock Shiraz $150
1965 Lindemans Bin 3110 Shiraz $805
1986 Penfolds Grange Shiraz $554
1998 Rockford Basket Press Shiraz $116
2002 Torbreck Run Rig $278
1999 Yalumba The Octavius Shiraz $80
2000 Chateau Cheval Blanc $1151
1986 Chateau Lafite Rothschild $519
2003 Chateau Leoville Barton $197
1996 Chateau Margaux $690
1945 Chateau Montrose $864
1982 Chateau Mouton Rothschild $978
2000 Chateau Pavie $453
2000 Chateau Petrus (magnum) $8626

All prices quoted are inclusive of Buyer’s Premium + GST, are rounded up to the nearest dollar and are in AUD$.

Third Quarter 2006

The third quarter 2006 market has been robust and dynamic at Langton’s. We have not seen the consequences of the “wine glut”. In July Langton’s realized its biggest month ever – successfully offering over 12,020 lots of fine wine – exceeding all previous monthly dollar sales. Demand for great Australian and imported wine has never been higher with an increase of 9% in client memberships during July.

The explosion of new Australian wine brands in the primary market has yet to impact on the secondary market. Buyers in the secondary market are looking for wines with track record. Consequently new wine brands, unless they are endorsed by Robert Parker Jr. do not perform well. Wine brands with a history and a strong reputation from great vintages lead the secondary market.

Langton’s Classification IV is a guide to the top performing 101 Australian wine brands. To see an interactive gallery of all the wines on the list please select The Market and click on the Classification Wines selection.

The more successful ultra-fine wines are performing extremely well with strong volume of demand and price realisations. Wines such as Rockford Basket Press Shiraz, Cullen Cabernet Merlot, Clonakilla Shiraz Viognier, Katnook Cabernet Sauvignon, Giaconda Chardonnay, Yalumba Octavius, Brokenwood Graveyard and Majella The Malleea to name a few are classic ultra-fine wines.

They represent quality at the highest level, embrace regional provenance in a meaningful way and are known for their consistency of style and longevity in the cellar. However the cult wine sector, a subset of the ultra-fine market driven by the influence of the American wine writer Robert Parker Jr., is performing erratically.

As always the balance between supply and demand is a critical feature of the fine wine auction market. The deployment of www.langtons.com.au has allowed buyers and sellers access to an unprecedented level of market intelligence, in particular Langton’s database of prices which can be accessed by selecting Wine Tools and clicking on the Price Guide selection.

Some of the highlights at Langton’s in July –

2001 Balnaves The Tally Reserve $82
1988 E&E Black Pepper Shiraz $72
1959 Chateau Haut Brion $2329
1996 Chateau Lafite Rothschild $923
1983 Château Margaux $540
1996 Château Mouton Rothschild $525
1996 Domaine Armand Rousseau Chambertin $548
2002 Domaine Armand Rousseau Clos St. Jacques $349
2002 Domaine Leflaive Chevalier Montrachet $600
2002 Domaine Leflaive Batard Montrachet $462
2003 Château Lafite Rothschild $785
2003 Chateau Haut Brion $737
2002 Domaine de la Romanee-Conti, Romanee Conti $3910
1995 Château Latour impérial $4370
1998 Geoff Merrill Henley Shiraz $65
2004 Giaconda Chardonnay $151
1998 Katnook Estate Cabernet Sauvignon $66
1998 Majella The Malleea $95
1996 Penfolds Bin 389 $58
1998 Penfolds Bin 389 $62
1990 St. Hallett Old Block Shiraz $64
2002 Wendouree Shiraz $117
1990 Yalumba Octavius $110

All prices quoted are inclusive of Buyer’s Premium + GST, are rounded up to the nearest dollar and are in AUD$.

For more comprehensive results please search our database of Australian and imported wine price realisations for over 40,000 vintages and 20,000 wines. Prices are updated after every sale. They can be found in the Wine Tools section of this site at Price Guide.

Langton’s Classic Penfolds Wine Auction – which closed on Monday August 21 – attracted a very strong level of interest illustrating (yet again) the extraordinary confidence Penfolds commands in the secondary wine market. The clearance rate of just over 90% was well above average for an online wine auction. Almost everything sold except for a handful of residual lots and some very rare Grange vintages, a very specialized collectors market which has struggled for some time now.

Prices across the board reflected very firm buyer sentiment. Mainstream vintages performed particularly well with some record breaking price realisations. Both the 1991 ($415) and 1999 ($416) Penfolds Granges interestingly achieved almost identical new auction records. Price movements suggest a positive market shift towards these under-rated but important vintages. The 1991 and 1999 have been sitting in the shadow of the 1990 and 1998 vintages. Buyers looking for top-notch quality are realizing that they represent outstanding value.

Managing Director Stewart Langton commented, “The overall results and the sheer strength in the numbers of buyers show a remarkable affection for Penfolds. Collectors and buyers from all walks of life are genuinely proud of these highly reliable and beautifully evocative wines. There isn’t another brand or wine in the world that can weave such a caste of disparate buyers into one hugely seductive web. There is something so wonderfully democratic and Australian about the Penfolds house style.”

The fabled 1962 Bin 60A Coonawarra Cabernet Kalimna Shiraz achieved highs of $4486 illustrating renewed energy and enthusiasm for this very rare and still beautiful drinking wine. The highly-gonged show wine 1967 Bin 7 Cabernet Shiraz also achieved new highs at $1155 a bottle.

The 2004 en primeur offerings attracted strong interest from buyers. The 2004 Bin 60A – a homage to the original 1962 – averaged out at $540 a bottle. The 2004 Block 42 Kalimna Cabernet – from the oldest pre-phylloxera Cabernet vineyard in the world – attracted $461 a bottle. These wines will be delivered to buyers in 2007. The successful sale of multiple lot offerings of several vintages across several bins – especially 1996 and 1998 – also showed the extraordinary market stability of Penfolds.

Andrew Caillard MW, Langton’s Sydney based wine auctioneer, said: “This sale result shows an overall confidence in ultra-fine Australian wine. Fine wine buyers are still prepared to pay decent prices for wines with personality, definition and difference.”

Some of the highlights of Langton’s Penfolds Auction –

1963 Bin 128 Coonawarra Shiraz $93
1990 Bin 128 Coonawarra Shiraz $59
1956 Bin 238 Private Bin Burgundy $402
1990 Bin 28 Kalimna Shiraz $39
1964 Bin 389 Cabernet-Shiraz $198
1990 Bin 389 Cabernet-Shiraz $128
1962 Bin 414 Special Show Sauternes $347
1962 Bin 60A Coonawarra Cabernet Kalimna Shiraz $4486
2004 Bin 60A Coonawarra Cabernet Barossa Valley Shiraz $577 (average $470)
2004 Bin 60A Coonawarra Cabernet Barossa Valley Shiraz $1611 Magnum
1967 Bin 7 Coonawarra Cabernet Kalimna Shiraz $1155
1980 Bin 80A Coonawarra Cabernet Kalimna Shiraz $320
1990 Bin 90A Coonawarra Cabernet Barossa Valley Shiraz $128
1951 Bin 1 Grange Shiraz $37950
1960 Bin 95 Grange Shiraz $2071
1971 Bin 95 Grange Shiraz $643
1976 Bin 95 Grange Shiraz $795
1986 Bin 95 Grange Shiraz $576
1990 Bin 95 Grange Shiraz $598
1991 Bin 95 Grange Shiraz $415
1996 Bin 95 Grange Shiraz $414
1998 Bin 95 Grange Shiraz $460
1999 Bin 95 Grange Shiraz $416
2000 Bin 95 Grange Shiraz $532
2004 Block 42 Kalimna Cabernet Sauvignon (en primeur) $461 (average $431)
2004 Block 42 Kalimna Cabernet Sauvignon (en primeur) $1393 (Magnum)
1966 St Henri Shiraz $182

All prices quoted are inclusive of Buyer’s Premium + GST, are rounded up to the nearest dollar and are in AUD$.

Langton’s buoyant market falls in with the strengthening sales of exceptional works of art, prime property and luxury goods. During September, Langton’s offered over 8,500 lots to an ever expanding online fine wine membership base.

Prices for ‘must have’ vintages are moving forward at a remarkable pace. Grange prices – from top 1980s and 1990s vintages – have risen by around 15% over the last quarter. Henschke Hill of Grace, Rockford Basket Press and Wendouree Shiraz have all firmed up demonstrating an extremely active and enthusiastic market. Stewart Langton notes, “The strong activity is skewed towards the best wines and vintages. Ultra fine Australian wine is performing really well at the moment. Champagne and prime vintages of Burgundy are also striding ahead. There is plenty of activity in the secondary wine market resulting in increased clearance rates.”

The September release of Heritage and Wine Orb wine investment stock is having only a small impact on the market at present. Wines such as D’Arenberg The Dead Arm Shiraz and Mount Langi Ghiran Langi Shiraz are surprisingly resilient considering the influx of vintages. Realistic reserves are aiding the sell-through of this stock. Virtual unknown names – such as proprietary brands Neck Oil and Nefertiti – have no real future on the secondary wine market unless at bargain basement prices. Langton’s has maintained clearance rates by only accepting stock that can be soaked up by the current market. Certainly there are some real bargains here.

Interest in old and classic Australian wines has increased markedly. Certainly the stars of the 1950s, 1960s and 1970s are getting very thin on the ground. The astonishing prices for Penfolds Bin 60A underscore the point that this type of wine is only finite and extremely rare. Curiously prices do not reflect the high risk attached to these old bottles. Rare and mature Bordeaux and Burgundy from tip-top vintages such as 1959, 1961 and 1982 are enjoying unprecedented demand.

Indeed the online auction environment seems to have experienced a ‘step-up’ in this quarter. It is not boom times but the market is strong. It is difficult to know whether prices will continue to move up or hold. Current economic and social sentiment will play some part in whether the trend will continue.

Some of the highlights at Langton’s in September –

2001 Bannockburn Pinot Noir $60
1996 E & E Back Pepper Shiraz $76
2001 Bass Phillip Reserve Pinot Noir $220
1998 Bests Thomson Family Shiraz Magnum $235
2003 Bindi Block 5 Pinot Noir $82
1998 Chris Ringland Shiraz $1022
2001 Clonakilla Shiraz Viognier Magnum $209
1996 Coriole Lloyd Reserve Shiraz $71
1995 Cullens Cabernet Merlot $105
1990 Henschke Hill of Grace $547
1964 Hardy’s Vintage Port $145
1957 Hardy’s Reserve Bin c24 $350
1996 Moss Wood Cabernet Sauvignon $138
1979 Penfolds Grange Magnum $2530
1986 Penfolds Grange $777
1983 Penfolds Grange $443
1996 Penfolds Grange $404
1968 Stonyfell Private Bin Claret $111
1959 Stonyfell Vintage Port $95
1952 Saltram Vintage Port $152
1996 Tyrrell’s Vat 1 Semillon $49
1991 Wolf Blass Black Label $109
1961 Yalumba Galway Claret $230
2003 Chateau Lafite Rothschild $783
1961 Chateau Latour $3162
1982 Chateau Leoville Las Cases $518
1959 Chateau Palmer $1496
1982 Chateau Trotanoy $462
1985 Domaine Rousseau Chambertin $634
1999 Domaine de la Romanee Conti Le Montrachet $2416
1934 Niepoort Colheite Oporto $920

All prices quoted are inclusive of Buyer’s Premium + GST, are rounded up to the nearest dollar and are in AUD$.

Fourth Quarter 2006

The wine auction market continues to enjoy a strong level of bidding, clearances rates and buyer participation. After a period of sluggish activity, 2006 has proven to be a remarkable year with near boom prices for top-notch vintages. Grange – a key market indicator – has risen about 15% across the board this year with record prices for 1971, 1986, 1990, 1991 and 1996 falling over during the period. Henschke Hill of Grace prices have also pulled up as a result of the traditional ‘pull-push’ market relationship between these two wines. Curiously it is almost impossible to sell wines of under $10 at auction.

An upward swing in price realizations is a result of increased volume of bidding and a high level of buyer confidence. A realistic balance between vendor expectations and buyer anticipation has resulted in an even spread of bidding and better clearance rates. During the quarter Langton’s offered over 25000 lots.

Solid demand for rare bottles of classic Australian wines and unusual vintages of Bordeaux resulted in an unprecedented level of record prices. A bottle of 1921 Chateau d’Yquem from a Canberra cellar achieved $7130. 1945 Chateau Petrus made $10321. In Sydney Langton’s offered arguably the oldest bottle of wine ever sold at auction in Australia. A bottle of Leisten Wine purportedly from the cellars of Mad Ludwig of Bavaria fetched $2992. In the London Evening News of December 21, 1910 this relic was rated a mention, “There was probably some kind of overhauling of the royal cellars: and so the ancient bottle went wandering abroad.” Anyway it’s probably undrinkable but a great conversation piece!

Penfolds Bin 389 was a star performer in 2006. The 1996 vintage reached an all time record of $98 a bottle in November. Expectations, however, have leveled off to a more comfortable $58! Clonakilla Shiraz Viognier has also performed really well. Some vintages have increased by as much as 30% on the back of tremendous bidding volume. 2002 Rockford Basket Press has moved up by 25% this year ($92 to $115) whereas 2002 Wendouree Shiraz has remained relatively static albeit at around the $115 mark. Both 2002 Leeuwin Estate Art Series Chardonnay and Giaconda Estate Vineyard Chardonnay peaked in September but overall have moved up by around 7% since January 2006. 1996 Moss Wood reached a record value of $191 in November although the overall trend in price realizations is at a much lower trajectory.

Generally top notch Australian Shiraz is currently out-performing Australian Cabernet Sauvignon. However the margin is closing illustrating strengthening confidence in Margaret River and Coonawarra Cabernet. Mount Mary Quintet has also performed well this year, most vintages achieving record prices in the fourth quarter. Australian wine collectors have always strongly supported the Late John Middleton’s idiosyncratic and beautifully elegant wine. His annual newsletter and state of the wine nation will be sorely missed. However his spirit of place will live on.

Overall the auction market is performing very well. The equilibrium between Demand and Supply is slightly out of balance resulting in excellent liquidity and price realizations for vendors. Bargains can be found but largely in the multiple lot offerings of Heritage and Wine Orb investor stock or off the beaten track. The outlook remains positive for the first quarter of 2007. We expect wine prices to remain robust as the market continues to attract solid support from national and international buyers.

As always the balance between supply and demand is a critical feature of the fine wine auction market. The deployment of www.langtons.com.au has allowed buyers and sellers access to an unprecedented level of market intelligence, in particular Langton’s database of prices which can be accessed by selecting Wine Tools and clicking on the Price Guide selection.

October highlights –

All prices quoted are per bottle, inclusive of Buyer’s Premium + GST and are in AUD$.

1994 Bests Thomson Shiraz magnum $287
1990 Craiglee Shiraz $82
1999 Cullens Cabernet Merlot $115
2001 Elderton Command Shiraz $59
1996 Giaconda Chardonnay $153
1996 Grant Burge Meshach $95
1990 Henschke Hill of Grace $484
1998 Kay Bros Block 6 Shiraz $110
1991 Leo Buring DWU17 Leonay Riesling $76
1965 Lindemans Bin 50 Burgundy $70
1996 Moss Wood Cabernet Sauvignon $154
1991 Rockford Basket Press Shiraz $202
1982 Wynns John Riddoch $207
1971 Penfolds Grange $995
1976 Penfolds Grange $702
1986 Penfolds Grange $662
1990 Penfolds Grange $678
2000 Chateau Latour $1352
1982 Chateau Mouton Rothschild $1438
1959 Chateau Palmer $1674
1945 Chateau Petrus $10351
1990 Chateau Le Pin $3316
2003 Domaine de la Romanee-Conti (DRC) La Tache $2458
2003 DRC Richebourg $1419
1993 Domaine Leroy Chambertin $1122
2001 Domaine Ramonet Montrachet $1266
2002 J.F. Coche Dury Meursault $415

November highlights –

1998 Barossa Valley Estates E&E Black Pepper Shiraz $101
1965 Brown Bros Everton Hills Shiraz $488
1998 Clarendon Hills Astralis Syrah $295
2001 Clonakilla Shiraz Viognier $115
1907 Chateau Reynella Special Burgundy $576
1938 Chateau Reynella Vintage Reserve Burgundy $576
1958 Hardys St. Thomas Burgundy $165
1982 De Bortoli Noble One $152
1966 Hardys Reserve Bin C626 Dry Red $71
1965 McWilliams Mount Pleasant O.H Shiraz $140
1958 McWilliams Mount Pleasant O.P Shiraz $203
1963 Penfolds Bin 128 $156
1996 Penfolds Bin 389 $98
1967 Penfolds Bin 707 $225
1976 Penfolds Bin 707 $229
1961 Penfolds Bin 58 Cabernet, Kalimna $1036
1967 Penfolds Bin 868 Sauternes $260
1971 Penfolds Grange $1158
1976 Penfolds Grange $757
1980 Penfolds Grange $536
1998 Penfolds Grange $641
1961 Seppelt Ch19 Great Western Burgundy $246
1956 Seppelt M56-59 Great Western Shiraz $256
1955 Wynns Michael Shiraz $1955
2001 Felton Road Block 5 Pinot Noir $186
1989 Chateau Haut Brion $1588
1982 Chateau Lafleur Pomerol $2071
2003 Chateau Montrose $352
1996 Chateau Petrus $1439
1874 Chateau Mouton Rothschild $3106
1945 Chateau Mouton Rothschild $4023
1921 Chateau D’Yquem $7130
1978 DRC Romanee Conti $10,639
1999 DRC Le Montrachet $2522
2001 J.F. Coche Dury Corton Charlemagne $1646
1631 Leisten Wein Germany $2992
1907 Madeira Wine producer unknown $1127

Langton’s sold over 9303 lots during December. The run up to Christmas and an overall buoyant market saw good, solid prices across the board. Clearance rates of top notch Australian wine – particularly classified wines – are excellent. ‘Must have’ imported wines including rare vintages are bringing really outstanding results.

Vintage reputation is becoming a key factor at auction. The 2001 Margaret River vintage – a good example – is enjoying strong demand resulting in a spike up of prices. 2001 Cullen Diane Madeline Cabernet Merlot ($150), 2001 Moss Wood Cabernet Sauvignon ($126) and 2001 Leeuwin Estate Art Series Chardonnay ($140) posted remarkable results. The exquisite 1999 Bass Phillips are also commanding a premium – the reserve fetched $190 a bottle (the equivalent of a Grand Cru Burgundy).

Some other December highlights –

All prices quoted are per bottle, inclusive of Buyer’s Premium + GST and are in AUD$.

Penfolds Grange

1999 - $401
1998 - $484
1997 - $290
1996 - $461
1994 - $349
1991 - $376

Bass Phillip Reserve Pinot Noir

1995 - $172
1991 - $185

Giaconda Chardonnay

2002 - $144
2001 - $132
2000 - $156
1999 - $163

Leeuwin Estate Art Series Chardonnay

2002 - $83
2001 - $140
1997 - $76

Mount Mary Quintet Cabernets

1994 - $128
1993 - $93
1991 - $144
1990 - $324

Penfolds Bin 707

1998 - $138
1997 - $116
1996 - $128
1994 - $120
1993 - $116
1992 - $105
1990 - $179

Rockford Basket Press Shiraz

1998 - $168
1997 - $82
1996 - $155
1994 - $93
1993 - $86
1991 - $145

Wendouree Shiraz

2002 - $120
2001 - $104
2000 - $84
1999 - $99
1998 - $164
1997 - $105
1996 - $116
1990 - $179

For more comprehensive results please search our database of Australian and imported wine price realisations for over 40,000 vintages and 20,000 wines. Prices are updated after every sale. They can be found in the Wine Tools section of this site at Price Guide.

To view Top 20 Results click on the Top 20 selection under Magazine.

All prices above are per bottle, include Buyer’s Premium and are in AUD$.

Andrew Caillard MW & Tamara Grischy
Langton’s

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