Joel Palous, managing director of AIM Vineyards, a company that advises clients on buying and managing vineyards, said he knew of seven other Chinese buyers, including companies, syndicates and wealthy individuals, looking for Bordeaux vineyards. Most had budgets ranging from Euro10 million (HK$105 million) to Euro50 million, and one buyer was prepared to pay Euro100 million for a trophy estate.

'We also have a few Hong Kong-based investors who are looking for properties, though smaller than those wanted by the Chinese investors - more like a retreat home for their family and friends,' Palous said.

Tim Swannie, director of French buyers' agency Home Hunts, said his company was helping two buyers from China and Hong Kong find Bordeaux vineyards. 'One of the clients is a company from mainland China looking for a trophy property with a large vineyard in Saint-Emilion or Medoc,' Swannie said.

'The proposed buyer is a well-known wine company in China already and this property will serve as its European base. The client's budget is up to about Euro25 million. The second client is from Hong Kong and is looking for a chateau or a manor house with a small vineyard to use as a holiday home. They would like to produce a small amount of wine for personal use and have a budget up to around Euro1.5 million.'

Demand for Bordeaux vineyards is higher now than a year ago, partly because they are now more affordable, said Swannie, and overseas demand was particularly strong.

'Prices have dropped a little over the past two to three years - perhaps by 10 to 15 per cent - which has helped,' Swannie said. 'Plus, some people are looking for a change of direction following the recession. The thought of living in France and making a living from your land is quite inviting to many. Aside from that, French wine seems to have had a real revival in the past 18 to 24 months. It has become quite fashionable for the international jet set to have a vineyard in their portfolio' as an investment or a status symbol.

Palous said Chinese buyers had paid 10 to 20 per cent above market value for their vineyards, an amount they would find difficult to recover in the long run. Cultural misunderstandings meant some owners of Bordeaux vineyards were reluctant to sell to Chinese, Palous said.

To avoid conflict, Chinese buyers ought to seek advice from professional vineyard managers who could negotiate on their behalf and advise on price and the best way to run it.

Modest budget

A Hong Kong buyer seeking a vineyard for a holiday home has a budget of: euro1.5m

Falling prices

Bordeaux vineyard prices have dropped in the past three years by 10 to: 15%

Chinese premium

Chinese vineyard buyers are said to have paid above market price by 10 to: 20%