Boat International - July 2018

Average price of yachts sold in Q1 2018: gross tonnage vs length

Q1 2018 compared to Q1 in previous years

113,164

349,256

394,833

1,333,977

26,981

26,990

33,851

30,459

163,788

AvgpriceperGT(€)

Avg price per metre (€)

24-30m 30-40m 40-50m 50-70m 70m+

Legend

Q1 2016 Q1 2017 Q1 2018

Sales

Total asking price

Average asking price

Average LOA

Average age

75 100 112

652.8

899.4

1097.9

8.7 9 9.8

36.15 35.65 35.61

12.06 12.25 11.34

(€ million)

(€ million)

(metres)

(years)

A rising tide...

W

hether you focus on the total
number of sales or the
combined value, there are many
reasons to be encouraged about the
performance of the global brokerage
market during the first three months of

2018. With 112 yachts changing hands with
      a combined asking price of €1.098 billion,
      the signs suggest that this year’s sales by
      brokers of both secondhand and new build
      yachts could surpass even 2017’s lofty
      figures. “This may be a consequence of a
      very dynamic, yet small market – the 24 to
      30 metre segment, consisting mainly of
      Sunseekers, Ferrettis, as well as
      Sanlorenzos and Cheoy Lees that have
      lately become very popular,” says Raphael
      Sauleau, CEO of Fraser.
      The only metric that shows a downward
      trend is average length (-0.1 per cent).
      Otherwise, yachts being sold are getting
      younger and more new-build projects are
      being signed, says Mark Elliott, sales and
      charter consultant at IYC: “It’s all about
      supply and demand – as the supply of used
      boats on the market is shrinking, the
      demand for new builds is increasing.”
      The completion of a new build doesn’t
      necessarily trigger a brokerage listing for
      the owner’s previous yacht, says Northrop
      & Johnson’s US commercial director
      Cromwell Littlejohn. “We’ve seen an
      unexpected number of clients entering into
      or soon taking delivery of new-build
      projects, who are comfortable owning
      multiple yachts, often of a surprisingly
      large size. This speaks volumes as to their
      confidence in the foreseeable brokerage
      market,” he says.
      The US market continues to dominate
      (specifically Californians, New Yorkers and
      Floridians, reveals Littlejohn) not just in
      terms of sales, but charter too – with the
      majority of first-time charterers also
      hailing from the US, according to Elliott,
      who argues that this is a strong indication
      of where future sales will come from.

Words – Chris Jefferies Research – Raphael Montigneaux

Q1 sales figures make for encouraging reading, but can

the brokerage market sustain this level of activity?

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