Superyacht purchases are a peculiar form of investment. Unlike land or real estate, yachts are guaranteed to depreciate in value over time. Yet, new yachts are delivered every year and our database alone holds over 7.9 billion dollars worth of yachts for sale. One might therefore ask oneself what is driving this demand for yachts.
A yacht is arguably one of the most prestigious possessions one can have and would undoubtedly turn quite a few heads at cocktail parties. Owning, as opposed to chartering, can also provide greater freedom in terms of dates and itineraries. From these points alone, one could think that purchasing a yacht is an irrational choice that has no correlation with current economics.
Data however indicates otherwise. According to a report by Boat International, 205 yachts were sold in 2010, at the height of the recession, and this number has doubled to 412 yachts sold in 2014. This seems to indicate that yacht sales are in fact highly dependent on price as are most ordinary purchases. One might therefore consider whether now is a good time to purchase a yacht.
Despite a certain recovery in the market following the subprime crisis, the market is still far from its 2006/2007-state. As one might recall, a breed of yacht flippers had emerged in the early 2000s that commissioned yachts and sold them at a profit, a few months before launch. This arbitrage opportunity emerged due to the fact that most shipyards had their order books full for up to 3-4 years and led to profits for flippers of about 15% according to the Wall Street Journal.
These days now seem like a long-gone past for most players in the industry as we've shown in our article on the economics of yachting. Whereas some shipyards are venturing into speculative builds, either borrowing money from banks or putting up their own capital, others are holding off on any construction before finding a client for the new build.
On the brokerage side of the market, yachts typically go through several stages of price reductions before eventually being sold. This process can often take 2-3 years with the final price generally being 25-30% lower than the resulting asking price. In this buyer's market dynamic, it is the serious sellers that often manage to sell their yachts faster, understanding that a buyer has several options to choose from.
The willingness of owners to sell therefore seems to be the largest force shaping the industry since, once the prices become reasonable and near market-rate, buyers are quickly located. One can however wonder why owners set unreasonable prices in the first place when the succession of price reductions seems inevitable.
Will Christie, yacht broker at Y.CO, told the Superyacht Times in an interview: "Owners are in most instances relying on brokers to advise them on a pricing strategy that achieves a quick sale at the best possible price, but it's hard not to be attracted to the agents who are promising you 20-30% more than the others. Yachts that come onto the market at an overpriced level tend to languish there for 2-3 years (sometimes more) and only sell after a number of price reductions, during which period the owner has continuing running costs and depreciation to bear, notwithstanding a fair bit of frustration! After a few price reductions, it seems that potential buyers stand back as they await the next inevitable reduction - it's a dangerous spiral."
As a result of these multi-million assets being tied up in a long selling process, shipyards and suppliers have a hard time getting clients to build new yachts according to Mr Christie. This in turn leads to more stagnation in the industry as a whole. It is not uncommon for an owner to reject the first offer that comes in and eventually sell, a few years later, at a price lower than the first buyer would have given.
To conclude, one can therefore see that there are several good opportunities on the market today through sellers that have come to realize the actual value of their yachts. Although until the industry fully recovers, if it ever happens, reasonably-priced deals should keep coming on a rolling-basis. Consequently, there are and will be yachts with inflated prices and good deals on the market at the same time.
A yacht is arguably one of the most prestigious possessions one can have and would undoubtedly turn quite a few heads at cocktail parties. Owning, as opposed to chartering, can also provide greater freedom in terms of dates and itineraries. From these points alone, one could think that purchasing a yacht is an irrational choice that has no correlation with current economics.
Data however indicates otherwise. According to a report by Boat International, 205 yachts were sold in 2010, at the height of the recession, and this number has doubled to 412 yachts sold in 2014. This seems to indicate that yacht sales are in fact highly dependent on price as are most ordinary purchases. One might therefore consider whether now is a good time to purchase a yacht.
Despite a certain recovery in the market following the subprime crisis, the market is still far from its 2006/2007-state. As one might recall, a breed of yacht flippers had emerged in the early 2000s that commissioned yachts and sold them at a profit, a few months before launch. This arbitrage opportunity emerged due to the fact that most shipyards had their order books full for up to 3-4 years and led to profits for flippers of about 15% according to the Wall Street Journal.
These days now seem like a long-gone past for most players in the industry as we've shown in our article on the economics of yachting. Whereas some shipyards are venturing into speculative builds, either borrowing money from banks or putting up their own capital, others are holding off on any construction before finding a client for the new build.
On the brokerage side of the market, yachts typically go through several stages of price reductions before eventually being sold. This process can often take 2-3 years with the final price generally being 25-30% lower than the resulting asking price. In this buyer's market dynamic, it is the serious sellers that often manage to sell their yachts faster, understanding that a buyer has several options to choose from.
The willingness of owners to sell therefore seems to be the largest force shaping the industry since, once the prices become reasonable and near market-rate, buyers are quickly located. One can however wonder why owners set unreasonable prices in the first place when the succession of price reductions seems inevitable.
Will Christie, yacht broker at Y.CO, told the Superyacht Times in an interview: "Owners are in most instances relying on brokers to advise them on a pricing strategy that achieves a quick sale at the best possible price, but it's hard not to be attracted to the agents who are promising you 20-30% more than the others. Yachts that come onto the market at an overpriced level tend to languish there for 2-3 years (sometimes more) and only sell after a number of price reductions, during which period the owner has continuing running costs and depreciation to bear, notwithstanding a fair bit of frustration! After a few price reductions, it seems that potential buyers stand back as they await the next inevitable reduction - it's a dangerous spiral."
As a result of these multi-million assets being tied up in a long selling process, shipyards and suppliers have a hard time getting clients to build new yachts according to Mr Christie. This in turn leads to more stagnation in the industry as a whole. It is not uncommon for an owner to reject the first offer that comes in and eventually sell, a few years later, at a price lower than the first buyer would have given.
To conclude, one can therefore see that there are several good opportunities on the market today through sellers that have come to realize the actual value of their yachts. Although until the industry fully recovers, if it ever happens, reasonably-priced deals should keep coming on a rolling-basis. Consequently, there are and will be yachts with inflated prices and good deals on the market at the same time.
Napoli-based shipyard Arcadia Yachts has delivered the second hull in the builder’s 105 series, the winner of World Superyacht Awards 2019 for Best Semi-displacement or Planing Motor Yacht.<blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/BxwjwWYAzZd/" data-instgrm-version="12" style=" background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:540px; min-width:326px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);"><div style="padding:16px;"> <a href="https://www.instagram.com/p/BxwjwWYAzZd/" style=" background:#FFFFFF; line-height:0; padding:0 0; text-align:center; text-decoration:none; width:100%;" target="_blank"> <div style=" display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; 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font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:550; line-height:18px;"> Посмотреть эту публикацию в Instagram</div></div><div style="padding: 12.5% 0;"></div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"><div> <div style="background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"></div> <div style="background-color: #F4F4F4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"></div> <div style="background-color: #F4F4F4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"></div></div><div style="margin-left: 8px;"> <div style=" background-color: #F4F4F4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"></div> <div style=" width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg)"></div></div><div style="margin-left: auto;"> <div style=" width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"></div> <div style=" background-color: #F4F4F4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"></div> <div style=" width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"></div></div></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style=" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"></div> <div style=" background-color: #F4F4F4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"></div></div></a><p style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;"><a href="https://www.instagram.com/p/BxwjwWYAzZd/" style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none;" target="_blank">Публикация от Ocean Drive (@oceandrive_yachting)</a> <time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2019-05-22T08:50:32+00:00">22 Май 2019 в 1:50 PDT</time></p></div></blockquote> <script async src="//www.instagram.com/embed.js"></script>The 32-metre yacht was christened Sea Coral II and delivered to charter broker OceanDrive. The yacht will be available for charter cruises around Amalfi, Sardinia, Corsica and the South of France starting from this summer. Based on the same platform as the Arcadia 100+, both exteriors and interiors of Arcadia 105 were developed in collaboration with Italian design studio Hot Lab. Sea Coral II comes as the second hull in the series, after the 2018 RJ.The 199-GT semi-planing superyacht has been constructed with a fibreglass hull onto a beam of 7.76 metres.The model is trademarked with glass walls between the aft-deck and main salon and openable floor-to-ceiling windows creating a fluid indoor-outdoor space.Thanks to the convertible 35-square-metre skylounge, a fully enclosed third deck can be protected against bad weather or open to enjoy the breeze and the scents of the sea.Accommodation on-board is provided for up to 10 guests within two doubles, two twins and one convertible cabin, along with the staff capacity for six. The yacht is equipped with games room, dining room and a private lounge.Toy storage of Sea Coral II comprises a Castoldi tender stored aft, two paddleboards, two Seabobs, a Kayak, wakeboard and water skis. Powered by two MAN V8 1200HP engines, the yacht cruises at 12-14 knots under reportedly low fuel consumption.As to other projects by the yard, with ten units now under construction, it has recently revealed the first Sherpa XL, that is approaching her completion.
May 23, 2019
The 54.3-metre Amels superyacht 4You, previously owned by co-founder of Russian real-estate development company PIK Group, Kirill Pisarev, has been sold with both the buyer and the seller represented by Edmiston.The second hull in Dutch shipyard Amels' successful Limited Editions 180 line, 4You was commissioned by her previous owner and launched in 2012. She has undergone several refit and maintenance works in 2016, 2017, with the latest one held in April 2019.The yacht features exterior design by UK-based Tim Heywood and interiors by Italian studio Laura Sessa. She is trademarked with a large sundeck and six staterooms for accommodation of up to 12 guests. Similarly to her sisterships Astra and Apollo, 4You features a timeless light grey hull and white superstructure.Propelled by MTU 12V 2000 M70 engines, 4You can reach a top speed of 15.5 knots and cruises at 13 knots. At the time of sale, 4You was asking €29,500,000.In 2016, the yacht’s previous owner Kirill Pisarev (net worth estimated at $6.1 billion, Forbes) won a law suit against Moran Yacht & Ship over a claim on commission over his previous yacht, also named 4You. The 47-metre 2009 Hessen could accommodate 10 guests in 5 cabins and was said to be too small for the owner’s family. Mr Pisarev therefore decided to sell the yacht and to commission a 55m yacht from Amels. Following the sale, Mr Pisarev ended up in court after the brokerage agency who managed and crewed the yacht, Moran Yacht and Ship, argued they were owed a £615,000 commission on the deal, 4% of the sale price. Their claim was dismissed by the High Court in 2014, and on February 11th 2016 Lord Justice Christopher Clarke dismissed the motion once again, reaffirming Mr Pisarev's victory in this legal dispute.
May 23, 2019
German builder Abeking & Rasmussen has revealed its 80-metre superyacht project Excellence, formerly known as Project 6505. The mammoth superyacht set to become the yard's sixth largest vessel, was rolled out of her shed earlier this morning. The yacht had been built to a steel hull at the Szczecin shipyard in Poland, moved to Germany in February 2018. The UK-based design studio Winch Design was responsible for Excellence’ both exterior and interior designs.The yacht’s framework bases on the same technical platform as that of the 81-metre Grace (ex. Kibo). She features a 12.6 metre beam and a maximum draught of 3.5 metres. Still, key trademarks of Excellence include vast expanses of glass on the three upper decks and a double-height effect, blurring the distinction between the upper deck and the panoramic skylounge. Excellence will offer accommodation to up to 14 guests.The yacht was commissioned by an experienced owner, with her delivery expected on time for the summer season, after completion of outfitting on-board and the official launch. Meanwhile, the most recent launch of a 70-metre-plus vessel was conducted by Abeking in 2018, with 75-metre Elandess.
May 22, 2019
On 14th May 2019, the Port of Amsterdam finalised the acquisition of the former Holland Jachtbouw shipyard in Zaandamm. Subsequently, Dutch builder Royal Huisman has moved into the facilities on a long-term agreement, strengthening its business position in Amsterdam.Jan Timmerman, CEO of Royal Huisman highlights: Extending our facilities in the Amsterdam region, we will be able to properly meet the growing demand among current and new customers. This second shipyard will, over a longer period of time, serve as an excellent addition to our existing site in Vollenhove, both for new builds and for refits.The new facility will add extra 12,000 sqm to 58,000 sqm of new build and refit space, combined together to 70,000 square metres under the Huisfit brand. The company aims to generate high-quality jobs in, as well as bring innovation and craftsmanship to the Amsterdam region.Koen Overtoom, CEO at the Port of Amsterdam, explained to Superyachtnews:Our acquisition of the shipyard and the decision to lease it to Royal Huisman is a boost to the manufacturing industry, which adds significant value to our port. The arrival of Royal Huisman to the Amsterdam port region is one step further towards fulfilling our goal of becoming a superyacht hub. The Amsterdam area is highly sought-after by yacht manufacturers owing to its highly skilled workforce, international airport and the celebrated Dutch sense of enterprise.Meanwhile, the port of Amsterdam is gradually enhancing the region as a superyacht hub, with not only Royal Huisman, but also Feadship officially opening new facilities in Amsterdam earlier this month.The Amsterdam location will become the third one operated by Royal Huisman, alongside its facilities in Vollenhove and Emden. The recent projects by Royal Huisman included the refit of two of the world’s largest sailing yachts, Eos and Athena, with 93m EOA relaunched earlier this year.
May 22, 2019
Last week, British builder Princess Yachts launched the new 15.5-metre F50 flybridge yacht, the fifth one in the F Class line. The F Class range is conceived by the builder as vessels with innovative use of space, alongside with focus on design, manufacturing quality, stellar performance and sea-keeping.The yacht designed by Princess Design Studio and the builder’s long-time collaborator, naval architect Bernard Olesinski, will feature a top speed of 36 knots thanks to two Volvo IPS 800 engines.The design concept was developed with on-deck living in mind, allowing guests move easily between exterior and interior areas. The yacht offers accommodation for up to six guests below deck, within a full-beam en-suite master stateroom, a forward en-suite cabin and a twin. Natural light fills all of them from the sweeping hull glazing. The F50 is trademarked with spacious cockpit seating area connected to the aft galley. Forward of the galley, there lays the saloon with a U-shaped sofa and a dining table for six. The latter can also convert to a comfortable berth in the dining area when needed. The F50’ spacious foredeck boasts a luxurious sunpad, perfect for reclining and relaxing in a secluded bay. Techno wise, the dual-station instrumentation and latest Volvo-Garmin navigation and control systems enable helming the yacht from both the main deck and flybridge for precision manoeuvring. Princess X95The F50 joins the F45, F55, F62 and F70 in the all-new line-up of Princess Yachts’ F Class. The line will soon also be joined by the brand’s newest concept X95, the so called "luxury SUV of the seas".
May 22, 2019