There’s a lot of talk these days, of market consolidation and the like. But what is striking about a market underpinned by such large transactional prices, is that our collective capitalisation remains remarkably consistent.
When looking at the headline figures over the last five years for both the new and second-hand markets, the unitary figures continue to be incredibly aligned, a fact that underlines our industry’s status as the vanguard of luxury consumption; a truly ‘niche’ market.
Over the last decade, we’ve witnessed a profound, and much-needed market adjustment, which has seen the new build market contract, in unit terms, at an average annual rate of four per cent.
Unsurprisingly, this slow-down in market catalysation has seen the number of existing vessels introduced to the resale market increase by four per cent over the same time period.
It is encouraging to see some rhyme or reason to our idiosyncratic industry. As is apparent by the graphics herewith, our industry is as much a servant to basic supply-demand economics as any other. A rise in sales flushes out the market, and triggers a spike in listings, which in turn, invariably shifts the dynamic back to a buyer’s market.
The 2019 resale market landscape contains many of the names one would expect, including 42 Benetti listings, nearly double that of the second-placed builder, Feadship. That the average price-per-metre is c. €20,000 less than the current crop of Westport listings is, perhaps eyebrow-raising, with Overmarine c. €80,000 less. Indeed, even a Sanlorenzo averages c. €30,000 less than a Sunseeker right now. So, is the market opportunity for a buyer in 2019 an Italian-built vessel, because they are certainly challenging the market.
Even so, YoY resale transactions are down in unitary terms. Although, thanks to four grandstand sales – Areti (Amastasia), Cloud 9 (Odyssey), Equanimity (Tranquility) and Excellence V (Arience), market capitalisation is up. These four sales comprise approximately 25 per cent of this figure.
All data supplied by The Superyacht Agency’s Intelligence team. Keep checking The Superyacht Forum’s dedicated page for a special announcement about our data proposition at this year’s event.
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