Sales Market Report Q1 2024

YACHT SALES & PURCHASE

JANUARY - MARCH ( Q1 ) 2024 OVERVIEW

EXECUTIVE SUMMARY

Q1 2024: YACHTING INDUSTRY OVERVIEW IN NUMBERS

SALES MARKET OVERVIEW

TOTAL NUMBER OF YACHTS SOLD ABOVE 24M

MARKET BALANCE

YACHTS SOLD BY CLOSING LOCATION AND SIZE RANGE

BROKERAGE YACHTS SOLD BY BUILDER

MARKET OUTLOOK

IYC HISTORICAL YACHT SALES

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.

Executive summary

In the initial quarter of 2024, the yacht sales market experienced a decline in both new and used transactions, continuing a downward trend that commenced in Q3 2022. This resulted in a significant -43% decrease in the market compared to the same period a year ago, bringing Q1 2024 sales to their lowest figures in recent years, reminiscent of those observed in 2019. With a total of 122 yachts sold during the past three months (93 used and 29 new build deals closed), the market witnessed a decrease in global demand while supply surged. Despite lower sales figures, yacht prices remained resilient, primarily driven by sustained demand for large yachts (164'/50m+) and limited available construction slots for new builds in shipyards. The global yacht sales market generated a total transaction value of $1.1 billion, reflecting a -26% decrease on a yearly basis, while the average length and volume of yachts sold remained stable.

Looking ahead, we anticipate that sales in the first half of 2024 will not exceed 400, with approximately 200 sales deals expected in Q2. Furthermore, we foresee a continuation of new yacht entries and expect more price corrections in the coming months. Considering the prevailing market conditions influenced by external factors, we project that the sales market trend for the first half of 2024 will mirror the pace observed during the peak of 2019.

The purpose of this report is to provide an overview of the state of the sales market during the first quarter of 2024 and an outlook into the first half of the year. We take a close look at the superyacht industry and in particular at all yachts 80' (24m) and above. IYC is actively monitoring the sales market by utilizing analytics to track industry trends and client behavior that have a direct impact on the overall performance of the industry.

The IYC Intelligence Team

Q1 2024: Yachting Industry Overview In Numbers

$1.1B

YACHTS SOLD IN Q1 2024

120' (36.3M)

TOTAL VALUE OF YACHTS SOLD -18%

TOTAL YACHTS LISTED FOR SALES IN Q1 2024 VERSUS Q1 2023 $11.8M

LAST ASKING PRICE - 6%

AVERAGE YACHT LENGTH SOLD IN Q1 2024

AVERAGE PRICE REDUCTION APPLIED TO YACHTS LISTINGS IN Q1 2024

Yacht Sales Overview - What You Need To Know

PERSISTING SALES SLOWDOWN

Following a period of more typical sales performance in 2023, the global sales market exhibited indications of continued deceleration during the initial quarter of 2024, which originated in the third quarter of 2022. Throughout the first three months of the year, the yacht sales sector observed an overall downturn in both new and pre-owned transactions, resulting in a 43% reduction in market activity, with only 122 yachts sold, inclusive of 29 new yacht deals. Notably, pre-owned sales transactions demonstrated greater resilience with a 15% decline. Consequently, the market reached its lowest point in recent years, falling even below the sales figures recorded in 2019 prior to the onset of the pandemic.

ONGOING DEMAND FOR LARGE QUALITY YACHTS

In comparison to the corresponding period last year, market data indicates a sustained demand for yachts exceeding 164’ (50m) during the first quarter of 2024. This segment of the yacht market witnessed notable growth, constituting 14% of all transactions, largely driven by heightened activity in the pre-owned yacht sector within this size category. For context, the equivalent figure for the first quarter of 2023 stood at 10%. Conversely, sales in other size ranges experienced a slight decrease compared to the same period in 2023.

SELLING PRICES REMAINED ROBUST

Over the past three months, the global yacht sales market saw a total of 122 yachts sold, resulting in a cumulative transaction value of $1.1 billion. This figure represents a 26% decrease from the first quarter of 2023. Despite the decline in total sales value, selling prices remained strong, particularly driven by the escalated asking prices of brokerage yachts, which rose by 18%. Regarding new yachts, there was only a marginal decrease in prices. The sustained firm pricing observed in Q1 2024 is notably associated with the sale of larger units and a lower market supply.

LOWER YACHT SUPPLY

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INCREASE IN PRICE UPDATES

MIXED SALES LEVEL

In the year 2024 so far, the market dynamics have revealed a widening disparity between yacht supply and sales, reaching the lowest ratio observed in recent years. Despite the surplus in supply over demand during the first quarter, new market entries experienced an 18% decline compared to Q1 2023 and a notable 22% decrease compared to the fourth quarter of 2023, indicating a current market state that is not advantageous for sellers. Nevertheless, initial asking prices remained robust in comparison to the same period last year, even witnessing an average 8% increase for vessels entering the market in Q1 2024. This resilience in pricing can be attributed to the inclusion of large and high-value yachts, with nearly a quarter of new entries exceeding 164’ (50m) during this period.

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Market data confirms a continual rise in price updates noted since the third quarter of 2023, yet this trend has not translated into a positive impact on the volume of new market entries or transactions at the beginning of 2024. The upward price adjustments resulted in an average price reduction of $537.000 marking a 27% increase compared to Q1 2023. The overall percentage of price reduction applied to sales listings during the first quarter of 2024 was 6%.

FOR NORTHERN EUROPEAN-BUILT YACHTS

Examining closed deals by builder in Q1 2024, it appeared that the volume of sales from Northern European yacht manufacturers was lower compared to the previous year. Specifically, Northern European-built yachts experienced reduced sales in both the new and brokerage markets, comprising 9% of total sales in Q1 2024 compared to 12% in the first quarter of 2023. Conversely, Italian-built vessels emerged as the most sought-after and sold during this period.

IYC AMONG TOP BROKERAGE FIRMS

In the initial quarter of the year, IYC achieved notable performance in quarterly sales, securing a total of eight yacht sales, including three new orders. This performance surpassed the company's figures compared to Q1 2023. However, despite this achievement, IYC ranked fourth among LYBRA members and fifth globally in terms of yacht sales to date. Concurrently, the company announced 20 new central agency sales listings during the same period, positioning it as the leading brokerage firm in this regard.