Sales Market Report - H1 2022

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YA C H T S A L E S & P U R C H A S E

MARKET REPORT JANUARY - JUNE (H1) 2022 OVERVIEW

T H E I N T E R N AT I O N A L YA C H T C O M PA N Y


CONTENTS

CONTENTS

4

EXECUTIVE SUMMARY

6

H1 2022: YACHTING INDUSTRY OVERVIEW IN NUMBERS

8

SALES MARKET OVERVIEW

10

TOTAL NUMBER OF YACHTS SOLD ABOVE 24M

12

MARKET BALANCE

14

YACHTS SOLD BY CLOSING LOCATION AND SIZE RANGE

16

BROKERAGE YACHTS SOLD BY BUILDER

18

MARKET OUTLOOK

20

IYC YACHT SALES 2018 - H1 2022

22

IYC IN NUMBERS

DISCLAIMER The IYC team has worked hard to ensure that all facts and information printed in this report at the time of publication are correct. IYC cannot accept responsibility for any errors, omission or inaccuracies and is not responsible for or owes any duty of care to any party seeking to rely on the content of the report. Any such reliance shall be taken at the persons’ own responsibility. No part of this report may be reproduced without the permission of IYC.

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EXECUTIVE SUMMARY Following a record year in the history of yachting, the first semester of 2022 was active in terms of sales with the market performing at slightly higher levels compared to the same periods in 2019 and 2020. The first six months of 2022 were characterized by ongoing high demand that continued to exceed the supply, with fewer vessels entering the market and superyacht prices remaining strong in both the new build and brokerage markets. With demand remainign high and expectations to see the market balance shift with more yachts listed for sale during the second half of the year, we see opportunities in both the used and new build yacht sectors. The purpose of this report is to provide an overview of the state of the sales market during the first six months of 2022 and an outlook for the market until the year end. We take a close look at the superyacht industry and in particular at all yachts 24m (80’) and above. IYC is closely following the sales market through analytics, identifying industry trends and client behavior which are directly affecting the industry and its performance. Irini Saranti Global Marketing Director

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JANUARY - JUNE 2022: YACHTING INDUSTRY OVERVIEW IN NUMBERS

416

YACHTS SOLD IN H1 2022

SALES MARKET REPORT | 6

€7,65M

AVERAGE LAST ASKING PRICE OF BROKERAGE YACHTS SOLD IN H1 2022

€115K

AVERAGE PRICE REDUCTION IN H1 2022

350

EXPECTED YACHT DELIVERY IN 2022

88m

LARGEST BROKERAGE YACHT SOLD IN H1 2002 (OCEANCO INFINITY)

1,800

SUPERYACHTS ON THE GLOBAL CHARTER MARKET

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SALES MARKET OVERVIEW

64% OF YACHT DEALS CLOSINGS IN EUROPE

JANUARY - JUNE 2022

Europe accounted for 64% of total deals in terms of closing location; the equivalent number was

Following a record year in 2021 (1,273 units sold) the first semester of 2022 was active, with higher sales compared to the same period in 2019 and 2020. Despite a volatile macro-environment, monthly yacht sales were stable, except for June, which recorded a decline. The first six months of 2022 were characterized by ongoing high demand that continued to exceed the supply, with fewer vessels entering the market and superyacht prices remaining strong in both the new build and brokerage markets. From January to June 2022 a total of 416 superyachts were sold: 152 new build vessels and 264 brokerage. In comparison, the total number of superyachts sold during the first semester of 2021 was 647, 336 in 2020 and 367 in 2019.

55% for the first semester of 2021. Out of the 263 yachts sold in Europe, Italy represented 54% of deals in the region. The US accounted for 27% with 84% of transactions closing in Florida. During the first semester of 2022 the US accounted for 32% of global yacht sales.

NEW BUILD YACHT SALES ABOVE 50M REMAINED STABLE

DEMAND WAS HIGHER THAN SUPPLY During the five first months of 2022 market demand surpassed supply; June was the first month of the year to show that this trend may start to shift. The first semester of 2022 concluded with a parity between yachts entering the market (402) versus yachts sold (416). Overall, looking at the market balance from January 2019 to June 2022, we see an excess of yacht supply versus demand, however the market remained in favor of sellers in Q1-Q2 2022.

PRICES REMAINED STRONG WITH HIGHER VALUE YACHTS SOLD

Since 2019, new build yacht sales over 24m have reported an increasing trend. There were 102 new vessels sold during the first semester of 2019, 121 in 2020, 204 in 2021 and 152 during the first six months of 2022. Despite a challenging macroeconomic environment, which tends to impact the larger

The first six months of 2022 stood out compared to previous years in terms of the average value of yachts sold both

size segment, new build yacht sales over 50m

in the new build and brokerage markets.

remained stable in the first semester of 2022

New build vessels had an average asking price of €19,03m; this was a +10,57% increase compared to the same period

(16) compared to the same period in 2021

in 2021, which had an average price of €17,21m. The same trend was recorded in the yacht brokerage sector, where

(17). We note, however, that major Northern

average used yacht prices (€7,72m) were +24,9% higher compared to 2021 (€6,18m). This increase was a result of

European shipyards including Lürssen, Abeking &

high demand coupled with higher construction prices for shipyards.

Rasmussen, Oceanco, Feadship and Heesen didn’t record any new build yacht sales during the first

LOWER VALUE PRICE REDUCTIONS

six months of the year.

In 2022 to date, the market recorded minor price reductions compared to previous years. The price reduction average was valued at €115,000, which only represented a decrease by

-1.7% of the last asking price. The

equivalent number for the same period in 2021 was €545,000 (-7,9% of last asking price), €589,000 (-9,5% of last asking price) in 2020 and €739,000 (-9,8% of last asking price) in 2019.

In comparison 18 brokerage yachts over 50m were sold, which was more in line with 2019 sales during the same period. The first half of 2021 recorded 31 brokerage sales above 50m.

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TOTAL NUMBER OF YACHTS SOLD ABOVE 24M AVERAGE LENGTH AND AVERAGE VALUE OF YACHTS SOLD BY DEAL TYPE JANUARY - JUNE 2019 - 2022

NUMBER OF YACHTS SOLD BY DEAL TYPE JANUARY - JUNE 2019 - 2022

SOLD NEW SOLD USED

YACHTS SOLD 800

NEW BUILD BROKERAGE AVERAGE LENGTH

VALUE IN MILLION 20€ 19,03€

700

647

600

15€

201

36,4 14,72€

17,21€

14,37€

500 400

367

300

102

200

265

336

446

10€

416 152

8,48€ 7,65€

121

5€

264

6,81€

215 0

0 H1 2020

35,0

34,5

100

H1 2019

6,18€

H1 2021

H1 2022

34,2 H1 2019

YEAR

*Source: Superyacht IQ. Yachts 24 meters and above. June 30, 2022

H1 2020

H1 2021

H1 2022

YEAR

*Source: Superyacht IQ. Yachts 24 meters and above. June 30, 2022

Total Yachts sold during the first six months of the year are UP BY +13% compared to 2019, but -35,7% versus 2021.

Yachts sold at higher average value versus same period in 2020 - 2021 in both new and used sales.

Brokerage sales are in line with 2019, up by +21,8% compared to 2020 and -40,8% versus 2021, which was an

Larger yachts sold in 2022 YTD vs 2020 - 2021. Yacht average length sold is down compared to 2019.

exceptional year for yacht sales.

Increase of new build sales average price value vs previous years [ +10,57% vs 2021, +32,43% vs 2020, +29,3 vs 2019].

+23,78% Increase in average value of brokerage sales vs 2021 and 2020, but lower vs 2019.

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MARKET BALANCE

MARKET BALANCE JANUARY - JUNE 2019 - 2022

SOLD NEW TO MARKET

YACHTS SOLD

700 600 500

647 562

554

517

400 300

367

402

416

336

200 100 0 H1 2019

H1 2020

H1 2021

H1 2022

YEAR

*Source: Superyacht IQ. Yachts 24 meters and above. June 30, 2022

Close parity between yachts entering the market versus yachts sold in the first six months of 2022.

Fewer yachts for sale on the market compared to previous years.

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YACHT SOLD BY CLOSING LOCATION

YACHT SOLD BY SIZE RANGE

% SALES BY CLOSING LOCATION (REGION)

% SALES BY CLOSING LOCATION (COUNTRY)

% YACHTS SOLD BY SIZE RANGE (METERS)

JANUARY - JUNE 2022

JANUARY - JUNE 2022

JANUARY - JUNE 2022

4% 9%

2%

EUROPE

27%

US

64%

REST OF WORLD

ITALY

13%

4%

4%

USA FRANCE/MONACO

34%

6%

14%

TURKEY

24-30m 30-40m

22%

40-50m

Small increase in sales above 40

NETHERLANDS

50-60m

meters now at 22% (20,42% in 2021).

UNITED KINGDOM

60m+

SPAIN

44%

GREECE

6% 9%

CROATIA

27%

34%

REST OF THE WORLD

64%

27%

78%

Of total sales closed in Europe (34% Italy).

Of total sales closed in the USA (83,6%

Of total sales were between 24-40 meters - similar to

European sales represented 55% in 2021.

Florida). USA sales represented 32,3%

2021 (79,6%).

of total sales in 2021.

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BROKERAGE YACHTS SOLD BY BUILDER AVERAGE VALUE OF BROKERAGE YACHTS SOLD & AVERAGE DAYS ON MARKET JANUARY - JUNE 2022 BY BUILDER

AVERAGE VALUE OF BROKERAGE YACHTS SOLD VALUE IN MILLION

AVERAGE DAYS ONE THE MARKET

20€

KEY TAKEAWAYS:

1463

TRINITY, HEESEN, WESTPORT Had the highest average value in brokerage yachts

15€

sold among builders with highest number of units

1008 757

10€

766

470

420

589 DAYS ON MARKET

671

614

590 5€

sold.

833

283

290

368

Average number for yachts sold during Jan-June

469 300

2022 period. 303

241

178

OCEAN ALEXANDER

125

Had the shortest average days on the market

CHRISTENSEN (1)

PALMER JOHNSON (2)

FEADSHIP (2)

BURGER BOAT (3)

OCEAN ALEXANDER (3)

PERINI NAVI (3)

HEESEN (4)

TRINITY (4)

RIVA (6)

CUSTOM LINE (6)

VIKING YACHTS (6)

LAZZARA (7)

OVERMARINE (7)

HORIZON (8)

WESTPORT (8)

FERRETTI (11)

SUNSEEKER (18)

SANLORENZO (19)

BENETTI (20)

0

BUILDERS & UNITS SOLD

Builders with highest units sold (brokerage): Benetti (20), Sanlorenzo (19), Sunseeker (18), Ferretti (11).

Brokerage sailing yachts (avg 894 days) took more time to sell compared to motor yachts (566 days) .

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(125), while Christensen had the longest t (1.463).

14 YEARS Average age of yachts sold during Jan-June 2022 period.

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MARKET OUTLOOK The first semester of 2022 was active in terms of sales, with the market performing at slightly higher levels compared to the same periods in 2019 and 2020. With 416 transactions completed between January and June, taking into

OPPORTUNITIES TO PURCHASE EXPLORER YACHTS There are currently 84 explorer and support vessels in build or under conversion globally. Over the past 10 years,

consideration the current rate of sales and the macroeconomic environment, we can anticipate that the number of

this type of vessel has become highly popular, with 96 deliveries over 30m. The trend is expected to sustain as yards

yachts sold in 2022 will reach 700 units. Opportunities in both the new and brokerage yacht sales markets will remain,

continue to introduce new concepts. On the brokerage side, with most explorer vessels having been delivered after

with high demand sustaining, although at a lower rate, and more yachts entering the market.

2000, we expect to see more units entering the market. With relatively few such vessels in operation, this type of yacht tends to sell fast.

MORE YACHTS WILL ENTER THE MARKET During the second half of the year, we expect to see the market balance shift with more yachts listed for sale. The first semester of 2022 concluded with a near equal number in yachts entering the market (402) and vessels sold (416). A more challenging macroeconomic environment and the debut of the yacht show season in September are expected to result in more yachts entering the market.

MORE DISCOUNTS ON BROKERAGE VESSELS The macroeconomic environment coupled with the increase in the number of yachts entering the market may drive certain owners to announce price reductions to sell before the end of 2022.

NEW BUILD YACHT PRICES EXPECTED TO GO UP The average asking price per new yacht, for the first half of 2022, was €21,86m. New build yacht prices are expected to increase resulting from high demand and the impact of global inflation on the price of goods and energy at shipyards. There are currently 159 new build vessels available for purchase with deliveries stretching until 2026. During the first half of 2022 fewer new build projects entered the market (57 versus 112 during the same period in 2021).

IMPACT OF THE WAR IN UKRAINE •

construction with owners on the sanctions list. While the projects have not been put on hold, potential delivery

There are currently over 1050 used yachts over 30m available for purchase. Price drops are primarily expected in the

cancelations by owners, or a failure to keep up with payments, could bring yachts with a more immediate delivery

smaller size range, but the reduction value is expected to be lower compared to previous years. With only 339 brokerage

date back on the market. In an environment with low yacht supply this could create opportunities for buyers

units available for sale in the 40m+ category this part of the market is expected to remain less flexible.

INCREASE IN YACHTS ENTERING THE CHARTER MARKET

New Build Opportunities: Following international sanctions, there are over 10 megayachts currently under

looking for new build vessels without the wait, as there are only 107 new yachts over 30m available for purchase. •

Auctions: In the coming months, detained assets owned by Russian entities could be auctioned off by governments. Well known megayachts on the sanctions list include Amadea, Lady M and Axioma.

Successful charter yachts will make for attractive purchase options among buyers. The charter market is expected to remain strong on both sides of the Atlantic and yacht chartering can constitute for a good answer in offsetting yacht ownership costs due to inflation and the increase in fuel prices.

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IYC TOTAL YACHT SALES 2018 - 2022

During the first six months of 2022 IYC successfully sold over 30 yachts with a combined value of over $236 million granting the firm once again a position among the Top 3 companies in the industry, in terms of number and value of

During the first six months of 2022 IYC performed strongly ranking second in terms of unit sales and third in terms of value of sales globally.

superyachts sold globally. Although IYC is an expert in yacht sales across all types and size segments, the company achieved 10% market share

IYC has a proven track record in selling yachts and consistently ranking among the Top 3 companies in yachts sales globally. Since 2018 the company has sold over 250 vessels ranging up to 110 meters. In 2021 IYC recorded 90 yachts sales, ranking second in yacht sales globally.

of all motor yachts sold in the above 50m size segment. IYC also completed the sale of one of the largest yachts in the industry, the 80m Bilgin Tatiana. With the company significantly focusing on the promotion of its own sales fleet, 57% of total sales recorded were transactions in which IYC represented the seller or completed an in-house deal. Additionally, the company successfully completed the sale of two vessels through its website.

NUMBER OF YACHTS SOLD 2018 - H1 2022

IYC YACHT SALES DEAL TYPE (%) JANUARY - JUNE 2022

100

80

60 43%

40 57%

REPRESENTING BUYER REPRESENTING SELLER

20

0 2018

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2019

2020

2021

H1 2022

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IYC IN NUMBERS IYC RETAINS ITS LEADERSHIP POSITION IN THE SALES MARKET

JANUARY - JUNE 2022 $236+ MILLION Value of brokerage yachts sold in first semester of 2022

#2 IN NUMBER OF YACHTS SOLD GLOBALLY January - June 2022

#3 IN VALUE SALES GLOBALLY January - June 2022

80M TATIANA - LARGEST YACHT SOLD BY IYC January - June 2022

73M DELTA MARINE LAUREL - IYC LARGEST SALES LISTING January - June 2022

10 NEW YACHTS Currently in build and sold by IYC

2021 90 YACHTS SOLD Number of yachts sold by IYC in 2021

#2 IN NUMBER OF YACHTS SOLD GLOBALLY (January - Dcember 2022)

80M BILGIN TATIANA SOLD BY IYC IN Q1 2022

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IT’S YOUR CHOICE. WE HELP YOU MAKE THE RIGHT ONE.

I YC .CO M


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