Page 2 - The Edge-AW-2015

MARKET
REPORT
Peter Brown and Richard Lambert, the respective heads of the highly regarded Burgess custom and semi-custom yacht brokerage teams, give an inside look at the latest market trends.
Peter Brown
Richard Lambert
For the first time in the modern market we are seeing a handful of yachts in excess of 90 metres formally available for sale.”
As we enter the second half of 2015, yacht sales activity remains consistent and prices are fairly stable, following a trend that started in 2014. While 2015 was relatively slow to get going, we experienced a late surge in spring sales activity with a number of high profile deals at the larger end of the market closing in June and July. An incredibly busy summer charter season has aided the volume of sales enquiries which are continuing to flow in, and the fourth quarter is likely to be extremely busy on all fronts.
US buyers continue to dominate the large yacht marketplace and a weakened Euro, coupled with a strengthening US economy, ensures that the weight of brokerage and new build deals are coming from the USA. The established yards are seeing a steady flow of large, custom yacht orders and with build slots moving further and further out, we are thankfully seeing more quality brokerage inventory for buyers who are not ready to build.
The sweet spot at the larger end of the market is for good pedigree, recent vintage motor yachts of between 55 and 65 metres, and availability remains low which may cause some limited upwards pressure on pricing in the medium to long term. For the first time in the modern market we are seeing a handful of very large yachts (in excess of 90 metres) formally available for sale, and a handful of high profile large yachts have been listed discreetly with Burgess and are attracting high levels of interest. This provides an interesting alternative for clients whose only option was to build in recent years, due to the absence of serious purchase opportunities.
The reduced risk and costs associated with ‘proven platform’ yacht construction are making for a very active segment of the market.”
The semi-custom yacht market (primarily 50 metres and under) has experienced a surge of activity over the last 12 months that has seen delivery times extending. The reduced risk and costs associated with ‘proven platform’ yacht construction are making for a very active segment of the market. The most successful semi-custom yards have the luxury of starting speculative projects, giving clients the opportunity to step onto a yacht in a very short time frame. This is proving a popular route for buyers who want ‘new’ but are not willing to wait.
The picture for the 30m to 50m market so far in 2015 is encouraging, and in line with the strong performance witnessed in 2014. The proportion of yachts being offered for sale remains steady at 28%, and there is broadly a market balance between the number of yachts being brought to the market and those being sold. While there is no upward pressure on asking prices, there is a continuing trend towards fewer price reductions which is a positive sign that the market conditions are stable.
The tempo at all levels of the sales market is gathering, and knowledge of the very best brokerage and shipyard deals is still the reserve of a handful of the world’s most experienced brokers. Never has there been a more crucial moment to engage the Burgess brokerage team to assist with your next step. I
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