Page 2 - The Edge Spring 2015

yaChTS FOR SaLE | Market report
Market
Report
In our 40th anniversary year the yacht brokerage market is undoubtedly settling into a 'new normal' state after the financial crisis, albeit a normal that was probably beyond the imagination of our founder, Nigel Burgess, in 1975. The yachting industry is now a large and maturing professional business, conducted on a truly global scale.
The last six years have been unpredictable, but 2015 has started with a reassuring degree of pricing stability. sales activity is consistent with this time last year, although the market influences have changed considerably.
The relative strength of the us dollar at the end of quarter one is significant, with euro-priced yachts and new builds now up to 20% cheaper for dollar-based buyers. us buyers are taking advantage of this, together with a more buoyant domestic economy, and are the dominant purchasers of the moment. However nervousness about the unstable political situation in russia and unrest in the Middle east ensures that the global market remains sensibly cautious.
Minimal inflationary pressures and a low oil price are helping to keep shipyard manufacturing costs in check, enabling the european yards to be competitive with their prices. Conversely, us dollar-based yards are having to work hard to offer an attractive sales proposition. While we are unlikely to see a big surge in demand for building fuel-guzzling speed machines, the trip to the fuel dock is now slightly less daunting for yacht owners,
and operating budgets in our managed fleets are significantly reduced.
so what does this mean for the sale and purchase market? supply no longer outstrips demand and so far this year a steady number of boats have come to the market, matched by a consistent number of well-priced boats being sold. prices have not tangibly increased, but this may change in the medium term, with prices likely to rise for larger custom yachts delivered in the last few years. This is due to the relatively small number of recent new deliveries in this sector, compounded by lengthening shipyard delivery times for a new vessel and a shortage of quality pre-owned large yachts for sale.
it is as true now as at any time over the last 40 years that well priced, well maintained, quality yachts will sell. Buyers continue to demand detailed information to find their ideal yacht so now, as throughout the past four decades, the savvy
buyer knows that the guidance of a well-informed, experienced broker is a priceless asset.
Tim Wiltshire
Burgess Group Sales Director
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