July 2011 Market Report

July 2011 in numbers

Yacht sales

July saw 29 yachts sold, compared to 17 a year ago, an increase of 71%. Amongst them were two of the largest yachts in the world – the 82m Alfa Nero and the 73.3m Silver Zwei, both of which changed hands last month, albeit without much fanfare. Total asking prices came to €365 million, a 30% increase year-on-year. Click here for full details of the superyachts sold in July 2011

Alfa Nero was one of 29 yachts sold in July

Looking at the year-to-date situation, 2011 sales were at 179 through July, compared to 125 in the same period last year, a 43% increase. In contrast, asking prices are only up 15%, although this is no surprise given the number of price cuts we have seen this year – 350 and counting.

Click here for more analysis of superyacht sales in 2011

New on the market

Another 31 yachts came up for sale in July. Amongst these were Rossi Navi’s brand new 70m Numptia, the 50m Perini Navi Perseus and the 42m classic motor yacht Istros.

Overall, the number of yachts coming on to the market continues to outstrip the number of sales, but the gap is certainly closing. The total for the year stands at 235.

Price reductions

Price reductions continue to dominate our news, with another 55 reported in July, including a $13 million reduction on the 58m Unbridled and a $4.6 million reduction on the 49m Destination Fox Harb’r Too.

It is hard to see this trend ending any time soon, particularly as owners look to try and sell their yachts before the end of the summer season.

New orders

Whilst the market for second-hand yachts has seen a notable upturn in recent months, the same cannot be said for new yachts. We were only informed of 3 new orders in July – two 60m yachts at Perini Navi and a 26m at Northern Marine. That takes the total number of new orders in 2011 to 49. That said, we expect the number number to rise as we receive more information from yards.

Click here for more details and analysis of new orders in 2011

19 superyachts were launched last month by 18 different yards (Moonen launched two). Italy saw the most activity in this respect with 10 launches, including the 65m Seanna by Benetti, and the 55m Galileo G by Picchiotti.

Deliveries

25 superyachts were delivered to their owners in July, the most we have reported in a single month so far this year by some distance.

The highlight was the delivery of Serene by Fincantieri. At 133.9m she is the largest yacht ever built by an Italian yard, and the eighth largest yacht in the world. There were also some other notable deliveries – the 84m Valerie by Lürssen, and three Feadships – the 87.87m Fountainhead, the 81m Air and the 77.7m Tango. All of these now rank in the top 100 largest yachts in the world.

Serene was delivered by Fincantieri in July

Views from the marketplace

This month we asked Sonay Gunay from 777 Yacht Group Company and Harry Bristow-Holmes at Sunseeker London for their perspectives on the state of the market. Here’s what they had to say:

Sonay Gunay, 777 Yacht Group Company

Sonay Gunay established Turkish brokerage house 777 Yacht Group Company in 2007, after a decade working in sales at the highly respected builder Proteksan Turquoise.

“In my opinion, in the last two months new and repeat clients investigated new builds more. They began asking more questions about the yards in terms of financial security, quality and order book. Clients are also interested in the newly established yards and they evaluate these options as well. Nowadays, many new designs are discussed and owners’ reps collect multiple alternatives for their clients.

Those clients also have budgets in mind. They expect quality for the amount of money they are to spend. That does not mean they will seek the cheapest price; I believe that the majority will be driven by how much value they will get for their money.

Over the last few months 777 has had more enquiries for projects at the design stage, and those clients want new builds at the right yard, with the right price.

As a boutique and unique broker, my suggestion to clients is that they check the financial security of the yard where they place an order. If you place an order at a reputable yard and if the yard is financially secure, you will probably sleep better.

It is not that new builders should be discounted, but owners should be aware that the price difference between a developing yard and an experienced yard is an investment in risk minimisation. The price and the risk are inversely proportional.

I believe the yards, the designers and brokers should come to a common understanding that this is a sector feeding us and serving all of our interests. Trustworthiness and hard work will bring even better days soon.”

W: www.777ygc.com

Harry Bristow-Holmes, Sunseeker London

“We have seen a big increase in enquiries over the past 6 to 12 weeks which have subsequently resulted in a number of brokerage sales of vessels over 80ft. Sales at the lower end of the market have been particularly difficult. However, as the biggest Sunseeker dealer in Europe, Sunseeker London Group’s brokerage department is going from strength to strength with annual brokerage sales and profits already exceeding last year’s with another 5 months left to run.

The trend for larger yachts continues to grow, however with widespread competition in the marketplace, savvy buyers are exploring all potential avenues prior to placing their orders. As a result the decision making process is taking longer than experienced in previous years which has unfortunately led to a number of clients missing out on the boat they really want. On the flipside, sellers are particularly aware of the competition and are therefore more realistic on their prices, thus providing buyers with excellent opportunities.

2012 promises to be an excellent year with the launch of the new 28 metre yacht in January at the London Boat Show (already sold out for 2012) and the first 30 metre Predator due to be delivered at some point in 2012. These exciting product launches along with sold-out production lines for the 115 Predator and 130 Predator are providing a solid base upon which the company continues to grow.

The future heralds the first of the new flagship 46 metre yacht which is scheduled for completion in 2013/2014 as well as the launch of the afore mentioned 30 metre Predator which promises to be one of the best Predators ever built. We are optimistic about the upcoming boat shows owing to the number of fresh leads and renewed interest for existing clients who are keen to upgrade.”

W: www.sunseekerlondon.com