Buying in a seller’s market

Following a flurry of new listings in recent months, Sales Broker Andy Holmes assesses the brokerage landscape for prospective buyers…

The past few years have been unprecedented and turbulent for the brokerage market. While the late 2010s were characterised by recovery and growth following the impact of the global financial crisis, the early 2020s began with the Covid-19 pandemic that brought the yachting industry to a temporary standstill. That standstill was then quickly followed by a boom in sales, which caught many in the industry by surprise.

In recent months, the industry has continued to see a flurry of new listings on the second-hand market as owners look to capitalise on buoyant market conditions. According to exclusive BOAT Pro data, the month of September saw a surge in the number of owners listing their yachts for sale, with new listing values exceeding €1 billion for the first time in 2022. The largest of these listings included the 90-metre PHOENIX 2 and 72.2-metre ALBATROSS.

Despite the proliferation of yachts on the market, Moravia Sales Broker Andy Holmes cautions that this doesn’t yet signify a buyer’s market. “Following the sales frenzy during the Covid-19 pandemic, we are actually quite low on inventory and finding a good quality yacht on the second-hand market for a respectable price remains a challenge,” he says. “There might be lots of yachts available for sale, but many come with a premium because it’s still a seller’s market.”

“Following the sales frenzy during the Covid-19 pandemic, we are actually quite low on inventory and finding a good quality yacht on the second-hand market for a respectable price remains a challenge”

Increasing global inflation pressures, supply chain restrictions and volatile foreign exchange rates, however, present an element of unpredictability for the future. “I would expect the dynamic to shift towards a buyer’s market over the next two-to-three years as these economic pressures play out, along with the launch of a significant number of new builds that are due to be delivered over the same timeframe,” adds Andy.

“I would expect the dynamic to shift towards a buyer’s market over the next two-to-three years as these economic pressures play out, along with the launch of a significant number of new builds that are due to be delivered over the same timeframe”

While many shipyards are reporting full order books until 2027, this shouldn’t deter prospective buyers from considering a new-build purchase. As Andy explains; “There are often opportunities to buy projects as they progress through the build phase when the incumbent contract owner changes their mind, or their circumstances change, and wants to exit. Depending on what stage the project is at, buyers may still be able to modify the cabin layout or add their own design features.”

Considering these complex market conditions, it has never been more important for prospective buyers to work with an experienced and transparent broker to navigate the yachts and projects available for sale.

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