| March 2011 Market |
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Last month saw the pace set in February continue to speed up, with more yachts sold than in any month since December 2009.
Brokerage A total of 25 superyachts over 24 metres were sold in March at asking prices totalling €148.63 million, as against 14 sales in March 2010 asking a total of €153.48 million. Overall, in the first quarter of this year 54 sales were recorded totalling €363.21 million compared to 42 sales in Q1 2010 with asking prices totalling €468.62 million. The 22% drop in total prices last quarter is explained by the fact that no yachts over 70 metres were sold in the period, against two in early 2010.
Click here for full details of the superyachts sold in March 2011
New on the Market and Price Reductions The number of yachts entering the market continues to grow, with 43 in March 2011, a 54% increase on the 28 noted in the same month last year, while for the first three months there were 114 entrants, 52% more than the 75 yachts in Q1 2010. This growth in the backlog of yachts is mirrored by the increased number of price reductions, with 60 last month compared to 36 in March 2010, up by 67%. And the story is the same on a quarterly basis as we counted 159 price drops in Q1 2011, a 64% increase on the 97 recorded in Q1 2010. New Orders, Launches and Completions Last month saw new build orders slightly down at three compared to five in March 2010 but, taking the first three months as a whole, 14 orders were reported as against 12 in the comparable period last year, an increase of 17%. Yards celebrated 21 launches last month, exactly the same number as a year ago while Q1 2011 saw 41 launches compared to 42 in Q1 2010. 10 superyachts were delivered to their new owners in March 2011 against 5 in the same month last year, although the number delivered in the first quarter, 42, was identical to that in Q1 2010. Full details of new orders, launches and completions are available in Market Intelligence. A Builder’s Perspective
Says Henk, “Things are better than they were a year ago, with some new orders placed but the new build market is still at around 20% of its peak level. We’re receiving more quality enquiries but some prospective clients are holding out for what are now unrealistic deals. I’m glad to say we’re one of the top 10 pedigree yards who receive almost all of such enquiries. “However I’m surprised that many of the newer yards are still going despite the dearth of orders. My guess is that they’re simply finishing current orders before closing their doors for good, probably before the end of 2011.” An Owner’s Perspective In view of the high number of price falls recorded over the past three months, we asked a seasoned yacht owner for his views and his response was succinct: “The market is the market and we prove every week that when boats are priced rationally, they will actually SELL…. until then they sit there and eat cash.” “The same is true in any market – price it right and it will sell. Like real estate, it is not coming back anytime soon. Owners who want to sell need to price based upon reality, not their hopes and dreams. It’s the same in every illiquid market, and that is what we are – an illiquid market.” |
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For a view on the new build side of the industry, we spoke to Henk De Vries of Feadship whose yard recently launched the mighty 81m motor yacht Air.