Sales Market Report January - September 2022

YACHT

MARKET REPORT

EXECUTIVE SUMMARY

The past three quarters of 2022 saw an active market. Despite an uncertain macroeconomic environment yacht sales proved to be resilient but at the same time the industry showed signs of “normalization” returning to pre-covid levels.

Sales increased compared to the same period in 2019 and 2020 but recorded a decline compared to 2021, which was a record-breaking year.

Q1 and Q2 2022 performed strongly carrying on trends from the previous year, but in Q3 sales slowed down and there seems to be a market correction, with more yachts listed for sale compared to the number of vessels sold.

Looking into the last quarter of the year, opportunities in both the new and brokerage yacht sales markets will remain, with strong demand sustaining, although at a lower rate, and more yachts entering the market. Prices are also expected to normalize in the coming months.

The purpose of this report is to provide an overview of the state of the sales market during the first nine 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 Digital Growth Director

SALES MARKET OVERVIEW - KEY TAKEAWAYS

JANUARY - SEPTEMBER 2022

The past three quarters of 2022 were active in the yacht sales market. Despite an uncertain macroeconomic environment yacht sales proved to be resilient but at the same time the industry showed signs of “normalization” returning to pre-covid levels. Following a record breaking 2021 (1307 yacht sold) Q1 and Q2 2022 performed strongly carrying on trends from the previous year: high demand, low supply, high prices and small price reductions. In Q3 the market recorded a slow-down in terms of sales and there seems to be a correction, with more yachts listed for sale compared to the number of yachts sold. From January to September 2022 a total of 642 superyachts were sold: 238 new build vessels and 404 brokerage. In comparison, the total number of superyachts sold during the first 3 quarters of 2021 was 946, 569 in 2020 and 378 in 2019.

Q3 MARKET BALANCE SHIFT

Following a similar trend to 2021, the first semester of 2022 saw demand surpassing supply with more yachts sold (514) compared to the number of new listings entering the market (433). June was the first month of the year to mark a near parity in terms of sales and new vessel entries, and as of Q3 the market balance appears to be shifting. Between July and September 245 superyachts entered the sales market and 129 yachts were sold.

PRICES REMAINED STRONG WITH HIGHER VALUE YACHTS - DESPITE FEWER YACHTS SOLD

The average value of yacht sold during the first three quarters of the year was higher compared to 2020 and 2021, both in new build and brokerage.

Driven by an increase in construction costs, new build vessel prices increased by +13,7% compared to the same period in 2021, with an average asking price of €22,97M, The same trend was recorded in the yacht brokerage sector, where average used yacht prices (€7,68M) were +17,8% higher compared to 2021 (€6,52M). This increase was a result of ongoing high demand and low supply.

LOWER VALUE PRICE REDUCTIONS

In 2022 to date, the market has recorded minor price reductions compared to previous years. The price reduction average was valued at only €128.000, which only represented a decrease by -1,4% of the last asking price. The equivalent number for the same period in 2021 was €510.000 (-7,3% of last asking price), €631.000 (-10,3% of last asking price) in 2020 and €692.000 (-9,3% of last asking price) in 2019.

58% OF YACHT DEALS CLOSINGS IN EUROPE

Europe accounted for 58% of total deals in terms of closing location, which is a small increase compared to transactions in the region during the same period in 2021 (55,6%). Italy represented 55% of all Europe-based closings. US based deals accounted for 24% of total transactions, which is a decrease from 30,7% in 2021. 69% of US based closings were in Florida.

With the euro and dollar almost at parity since July, Europe based listings are gaining favor with buyers around the world.

NEW BUILD YACHT SALES ABOVE 50M REMAINED STABLE

Since 2019 new build yacht sales over 50m have reported a stable trend. There were 25 new vessels sold during Q1-Q3 of 2019, 19 in 2020, 35 in 2021 and 30 in 2022. We note that major Northern European shipyards recorded fewer sales compared to Italian yards in this size segment. Individuals from Russia and the Middle-Easter are traditionally the main buyers of megayachts built in Norther Europe. In the brokerage sector this size segment performed in line with 2019, with 30 yachts sold over 50m. This is a decline compared to 2021, which recorded 44 sales. With a market under pressure for larger vessels, Q1-Q3 2022 only saw 54 yachts over 50m entering the market, resulting in buyers immediately jumping on good deal opportunities.

KEY TAKEAWAYS:

TRINITY, HEESEN, WESTPORT

Had the highest average value in brokerage yachts sold among builders with highest number of units sold.

606 DAYS ON MARKET

Average number for yachts sold during Jan-Sep 2022 period.

PRINCESS YACHTS

Had the shortest average days on the market (127), while Christensen had the longest time on market (2.659).

25 YEARS

Average age of yachts sold during Jan-Sep 2022 period.

MARKET OUTLOOK

The past three quarters of 2022 were active in terms of sales, with the market performing at higher levels compared to the same periods in 2019 and 2020. With 642 transactions completed between January and September, taking into consideration the current rate of sales and the macroeconomic environment, we can anticipate that the number of yachts sold in 2022 will easily reach 700 units even though Q4 sales are expected to go at a slower pace. Opportunities in both the new and brokerage yacht sales markets will remain, with strong demand sustaining, although at a lower rate, and more yachts entering the market.

Prices are also expected to normalize in the coming months.

MORE YACHTS WILL ENTER THE MARKET

Over the next months we expect to see more yachts getting listed for sale. Since the beginning of 2021 sales had been equal to or surpassed new yachts entering the market. Q3 2022 marked a shift in the market balance trend, which we expect will continue.

Major boat shows in the US, such as the Fort Lauderdale International Boat Show in Q4 2022 and the Palm Beach International Boat Show in Q1 2023, always constitute an opportunity to showcase new, quality listings, and we expect this to be the case in the upcoming shows.

MORE DISCOUNTS ON BROKERAGE VESSELS, WITH PRICES NORMALIZING

With more yachts entering the market and a healthier balance between supply and demand, prices are expected to decrease, reaching more realistic levels.

There are currently over 939 used yachts over 30m available for purchase. Price drops are primarily expected in the smaller size range, but the reduction value is expected to still remain lower compared to previous years. With only 330 brokerage units available for sale in the 40m+ category this part of the market is expected to remain more inelastic. Additionally, we anticipate seeing certain owners announcing more price reductions before the end of 2022, to ensure a sale in time for the summer charter season.

MORE YACHTS ENTERING THE CHARTER MARKET

2022 was a record breaking year for the charter market with demand exceeding supply, especially in the Mediterranean. We expect that the charter market will 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. Successful charter yachts will make for attractive purchase options among buyers.

AN UNCERTAIN MARKET ENVIRONMENT

Even though the superyacht sales industry has proven to be resilient, global macroeconomic uncertainty is expected to slow the market’s activity pace. We anticipate that yacht demand among UHNWIs to remain high, however global events constitute the yachting industry more volatile. Acting fast on good sales deals and aiming for quick transaction turnarounds is recommended in this environment.

FULL SHIPYARDS’ ORDER BOOKS UNTIL 2026

There are 417 superyachts over 30m currently in build worldwide, planned to be delivered in 2023 onwards. Most notable shipyards are already at high capacity, with limited slots until 2026, making new build projects for sale and newly delivered brokerage yachts a great opportunity. Over the coming months new build yacht prices are expected to increase resulting from both high demand and the impact of global inflation on the price of goods and energy at shipyards.

There are currently 99 new build vessels over 30m available for purchase with deliveries stretching until 2026 with an average asking price reaching €26,5 million. During Q1-Q3 of 2022 fewer new build projects over 30m entered the market (59 versus 83 during the same period in 2021).

DEMAND TO REMAIN HIGH AMONG UHNWIS

The increase in wealth among UHNWIs and the growing number of new buyers entering the market is expected to keep superyacht demand high. Over the past two years the number of UHNWIs increased by +9,3% worldwide according to Knight Frank, and by +12,2% in North America alone. Major buyers traditionally come from the US, Europe and Turkey, and the absence of Russians clients this year does not seem to have impacted the market.

IYC TOTAL YACHT SALES 2018 - 2022

IYC retains its leadership position in the superyacht industry, ranking second in terms of number of yacht sold and third in value of yacht sales

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.

During the first three quarters of 2022 IYC successfully sold 40 yachts with a combined value of over $335 million.

Although IYC is an expert in yacht sales across all types and size segments, the company holds 10% market share of all motor yachts sold in the above 50m size segment. In Q1 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, 58% of total sales recorded were transactions in which IYC represented the seller or completed an in-house deal. Additionally, the company ia heavily investing in digital and successfully completed the sale of two vessels through the website.

IYC YACHT SALES DEAL TYPE

JANUARY - SEPTEMBER 2022

IYC IN NUMBERS

IYC RETAINS ITS LEADERSHIP POSITION IN THE SALES MARKET

JANUARY - SEPTEMBER 2022

$335+ MILLION

Value of brokerage yachts sold in Q1-Q3 2022

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

#1 IN NUMBER OF YACHTS SOLD AMONG LYBRA MEMBERS (January - September 2022) - Leading Yacht Broker Association

#3 IN VALUE SALES GLOBALLY (January - September 2022)

80M TATIANA - LARGEST YACHT SOLD BY IYC (January - September 2022)

73M DELTA MARINE LAUREL - IYC LARGEST SALES LISTING (January - September 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 - December 2021)

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