Second-hand superyacht market in stasis
The industry seems to have become stuck in a never-ending loop of high opening asking prices followed by continuous price reductions when it comes to second-hand superyacht sales. SuperyachtNews.com met with some of the market's leading brokers to discuss the issues and the changes that are needed.…
The industry seems to have become stuck in a never-ending loop when it comes to superyacht sales. Unrealistically high starting prices for yachts are leading to price drop after price drop, which in turn is encouraging buyers to hold out for longer before committing to a purchase in the hopes of another discount being around the corner. And so yachts, good yachts, stay on the market for years at a time.
“I think our market is in stasis,” Neil Cheston, director of yacht sales and charter at Y.CO told SuperyachtNews.com during a discussion at the Y.CO London office. For him, the continuous price reductions are nothing but detrimental, deterring buyers from making an offer and diminishing the perceived value of the superyacht: “The phrase ‘reassuringly expensive’ is especially true in yachting.”
For Toby Walker, managing director at Dubois, the problem stems from unrealistic owner expectations. Understandably an owner is going to be tempted to award the role of central agency to the broker who promises to sell the yacht for the highest price. But Walker argues that if owner expectations of the value of their yacht were more realistic, they would be aware when a valuation was unrealistically high and when one was attainable.
“The owner’s expectations often aren’t realistic, not just on price but on the devaluation of a yacht,” he said to us when we visited the Dubois offices in the New Forest. “Many think that because it is an asset more valuable than most properties, that it is going to appreciate like property. This is not the case.”
In a conversation about the same topic, Edmund Peel from Ocean Independence said that it was equally important to educate the buyers to help them understand when a yacht is well-priced and good value. Cheston told SuperyachtNews.com that he thinks the way to achieve this is to look at the industry from fresh eyes. “We want to encourage new people into the market,” he explained. “All of these people are looking at the market from fresh eyes, it is an intimidating industry, how can we make it easier for them?”
The Superyacht Report will explore the state of the second hand market in greater detail in Issue 142.
“I think our market is in stasis,” Neil Cheston, director of yacht sales and charter at Y.CO told SuperyachtNews.com during a discussion at the Y.CO London office. For him, the continuous price reductions are nothing but detrimental, deterring buyers from making an offer and diminishing the perceived value of the superyacht: “The phrase ‘reassuringly expensive’ is especially true in yachting.”
For Toby Walker, managing director at Dubois, the problem stems from unrealistic owner expectations. Understandably an owner is going to be tempted to award the role of central agency to the broker who promises to sell the yacht for the highest price. But Walker argues that if owner expectations of the value of their yacht were more realistic, they would be aware when a valuation was unrealistically high and when one was attainable.
“The owner’s expectations often aren’t realistic, not just on price but on the devaluation of a yacht,” he said to us when we visited the Dubois offices in the New Forest. “Many think that because it is an asset more valuable than most properties, that it is going to appreciate like property. This is not the case.”
In a conversation about the same topic, Edmund Peel from Ocean Independence said that it was equally important to educate the buyers to help them understand when a yacht is well-priced and good value. Cheston told SuperyachtNews.com that he thinks the way to achieve this is to look at the industry from fresh eyes. “We want to encourage new people into the market,” he explained. “All of these people are looking at the market from fresh eyes, it is an intimidating industry, how can we make it easier for them?”
The Superyacht Report will explore the state of the second hand market in greater detail in Issue 142.
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