MARKET REPORT
THE INTERNATIONAL YACHT COMPANY
SALES & PURCHASE
JANUARY - SEPTEMBER 2022 OVERVIEW
CONTENTS EXECUTIVE SUMMARY Q1 - Q3 2022: 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 YACHT SALES 2018 - 2022 YTD IYC IN NUMBERS CONTENTS 4 6 8 10 12 14 16 18 20 22 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
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 REPORT | 5
JANUARY - SEPTEMBER 2022: YACHTING INDUSTRY OVERVIEW IN NUMBERS 642 YACHTS SOLD IN Q1-Q3 2022 €7,68M AVERAGE LAST ASKING PRICE OF BROKERAGE YACHTS SOLD IN Q1-Q3 2022 €115K AVERAGE PRICE REDUCTION IN Q1-Q3 2022
350 EXPECTED YACHT DELIVERY IN 2022 97m LARGEST BROKERAGE YACHT SOLD IN Q1-Q3 2022 (LÜRSSEN CARINTHIA VII) 1.900 SUPERYACHTS ON THE GLOBAL CHARTER MARKET
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.
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