| I believe the market has settled into a perpetual | | | | caveat that will not be quashed, whatever may be |
| state of limbo. Buyers, Sellers, and Yacht brokers | | | | happening in the financial markets. |
| alike are watching the mess which the 'credit crunch | | | | Many luxury yacht charter companies specialising in |
| 'is causing to the Financial Markets and waiting to see | | | | yacht sales and yacht charter, have a traditional |
| what this effect has on the second hand yacht | | | | business base in crew recruitment and yacht crew |
| market and shipyard orders. The Sellers that have | | | | training. The demand for qualified crew from the |
| been actively marketing their yachts over this winter | | | | superyacht market remains unabated from Captains |
| with their brokers have generally found a buyer. The | | | | and Owners alike and the lack of qualified crew is |
| 50m + market has been very active and most of | | | | driving the salaries of the specialized crew (i.e. |
| the brokerage stock has been sold to date. The 35 - | | | | engineers, chefs etc) upwards at an incredible rate. |
| 50m sales have been slower but when yachts have | | | | Yachts just cannot afford to lose their best people |
| been priced to sell, generally they have found a willing | | | | with so few qualified replacements available. The |
| buyer. The under 35m market has been slow and | | | | training division of many yacht charter companies |
| stock is starting to build up. My reported general | | | | have increased capacity in their attempt to qualify |
| state of uncertainty aligned with the volatility of the | | | | crew at the necessary rate in order to satisfy |
| world currency markets is causing a few nervous | | | | market demand. |
| stirrings in the market. | | | | Finally, to return to my opening gambit, regarding the` |
| In the last few months, the dollar has moved to | | | | state of limbo` in the second hand sales market! I |
| record lows against the euro, and this is definitely | | | | honestly believe that sellers will have to cut prices in |
| dissuading the dollar-based client from buying in euro | | | | order to sell their yachts. This will then have a |
| land, and as I write, the same is happening to the | | | | stimulating effect through the sizes, with owners of |
| Pound, and will certainly deter the pound-strong Brit | | | | smaller yachts cutting their prices with the knowledge |
| from buying euro yachts. This, however, may just be | | | | that prices are being reduced further up the ladder. |
| a minor blip; currencies may realign and the good | | | | With deals in the shipyards being few and far |
| times may well roll again sooner rather than later; but | | | | between for bargain hunting buyers, the brokerage |
| as I write this article, I am left with a feeling of a | | | | market will be studied for opportunities, and as these |
| cold wind just starting to blow through the business. | | | | possibilities arise more doors will open for buyers and |
| Enough `doom, gloom and general anxiety': The | | | | sellers alike. |
| shipyards are currently full with orders, and it is very | | | | My final thought concerns the `China factor'. When will |
| difficult to find builders with any spare slots before | | | | the expected surge of Chinese buyers arrive in the |
| 2011.Full shipyards mean full employment for yacht | | | | traditional heartlands of the Super yacht Market |
| designers, project managers, yacht managers, crew, | | | | -Monaco, Antibes, and Ft Lauderdale? Will they just |
| interior specialists and all the ancillary businesses that | | | | buy new? Will they start small and work upwards? |
| are associated with building super yachts.2011 is a | | | | Will they charter before they buy? Watch this space |
| long way off and the orders will, I believe, continue | | | | and read Market Intelligence over the months and |
| to be placed by discerning buyers who know what | | | | years to come! |
| they are looking to own. Owning a new yacht has a | | | | |