What can I get for my money?
We explore what is available to buyers on today’s brokerage market…
There is no exact science to explain how buyers within certain wealth brackets are going to spend their money, especially when it comes to superyachts. Some buyers, for instance, may be willing to spend a larger portion of their wealth to present an image to the world that they have more money than they actually do, or perhaps they are so driven by a passion for a particular product that they are willing to spend more than they should. Other buyers, however, will spend a far smaller portion of their wealth on the very same product. Perhaps they prefer to remain understated or perhaps they are more frugal by nature? Looking beyond these extremes, however, it is possible to predict what sums individuals are likely to spend on superyachts, as well as tracking what is available on today’s market.
By working with some of the industry’s top brokers, The Superyacht Agency has created a metric that allows us to accurately predict how much a buyer is likely to spend on a second-hand superyacht depending on their net worth. Once this metric was established it then became possible to start overlaying this information with various other data sets to create a more accurate and colourful picture of buyer potential.
The above graph highlights how much individuals from certain wealth brackets are likely to spend on a second-hand vessel, as well as showcasing the average length of vessels purchased for the predicted price. While it hardly needs to be said, the graph shows that as wealth grows so too do the vessels’ price and size. Given the great gulf in wealth between the superyacht market's entry-level buyers and highest earners, it is near impossible to show the necessary detail on a single chart. The above graph, therefore, is a broad snapshot of the available data. For greater detail and smaller wealth brackets, contact The Superyacht Agency and inquire about data provision or consultation.
The second graph provides a far more colourful insight into what superyacht buyers can expect to get for their money. Does the buyer value size or year of build? Are they determined to purchase a vessel from only within the most recognisable brands, or are they willing to explore other businesses and products? Unsurprisingly, the newer the superyacht, the higher the value is likely to be and, therefore, if a buyer wanted a larger vessel they would, more than likely, have to look for a project that was older.
If, for example, an owner had $30-40million to spend, they would be able to purchase a 50m Heesen that was delivered in 2016 or, alternatively, they could buy a Feadship that was delivered in 2000. Equally, If the buyer had $10-15million to spend, they could buy a 37m Heesen (2011) or a 52m Benetti (1995). There will always be a trade-off if the buyer has a specific budget in mind.
The above graphs merely provide a snapshot of the buying market. In order to create something of more specific value, each category could be broken down into subcategories with additional fields being added to create more accurate pictures for specific buyers and stakeholders.
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