How much is your yacht worth?
It’s no secret that the pandemic has had a huge effect on the superyacht community. With inventory low and demand still strong, many owners have found themselves in a great position to sell up.
With inventory low following two years of soaring demand within the yacht market, your yacht's value could be at an all-time high. More and more discerning Owners are deciding to engage in the market to see what opportunities it may hold, leaving many pleasantly surprised at the true value of their current yacht. Average pricing per used yacht is up 10% with the price per GT maintaining its upward trajectory, fuelled by the effects of the pandemic ($27,999 in 2019, to $31,259 in 2022). Furthermore, the average price reductions within the brokerage market have decreased from €700,000 in Q3 of 2020, to just €200,000 by Q4 of 2021, accompanied by a significantly reduced number of price reductions in total.
While pricing remains strong across the board, it is especially the case for some sellers more than others. For example, from 2020 to 2021, the sailing yachts price per GT between 30-40m rose by almost 30%, as did the price for motor yachts of 50-60m in length, putting sellers in this category in an advantageous position. In terms of construction heritage, it is unsurprising that German and Dutch builds were snapped up quickly the past few years, leaving inventory for this prestigious breed lower than most. The same applies to US-built yachts, which puts any seller with an American build in an advantageous position, especially in the solid US market where demand for home-grown creations continues to grow.
The age of your yacht is, of course, a significant factor. Throughout 2021, orders for new-build yachts doubled, resulting in a record-breaking 302 sales across the year. The insecurity of the pandemic fostered a new desire for a custom creation fully suited to the Owner's unique lifestyle and a necessity for prolonged stays on board to avoid the mayhem and restrictions elsewhere. However, in 2022, lengthy wait times on new projects as well as severe supply chain and labour shortage issues have forced this option off the table for many prospective yacht buyers. With a new yacht no longer an option for many, the market for the next best alternative has strengthened significantly. "Nearly New" is the new "New".
While prices for recent builds have risen in the past years, the knock-on effect for the brokerage market also increased the demand and market value of slightly older yachts. The average age of 30-40m brokerage yachts sold rose by just under one year, and the 40-50m range by over two years. Most notably, however, is the average age of sailing yachts between 40-50m, which increased by over 24 years.
With sales in mind and looking ahead, many prospective buyers, sellers, and industry professionals are eager to fully re-engage with major international yacht shows free of restrictions for the first time in almost three years. While many companies and clients have adapted to virtual viewings and presentations, nothing quite beats the experience of stepping on board and the ecstatic feeling of knowing you’ve found “the one”.
Are you interested?
For any prospective Seller, the next 12 months of events, starting with the Cannes and Monaco shows in September, represent a fantastic opportunity to showcase their yachts and take advantage of the heightened appetite within the market.
In today’s world, the brokerage yacht market has become more complex and unpredictable than ever before. To fully realise the opportunities within the market, it is essential to have a team of passionate, transparent, and knowledgeable consultants by your side throughout. For an accurate and trustworthy appraisal of your yacht, or information on exhibiting your yacht at a show, please don’t hesitate to contact one of our sales consultants.