H1 Brokerage Sales at 83% of 2020’s Total [In the News]

Brokers have sold 83% of last year’s entire superyacht capacity in the first six months of 2021, as the promise of a record-breaking year for sales continues to unfold, exclusive BOAT Pro data reveals.

This article was featured on BOAT International in July 2021 and was written by Nic Robinson.

Sales of superyachts (new and pre-owned boats 24 metres-plus) by brokers in 2021 continued to significantly outperform previous years as demand for vessels tracks increasingly higher, driven in part by coronavirus lockdown restrictions and travel safety concerns.

During the first half of 2021 (January–June), 344 superyachts exchanged hands through brokers with an average asking price of €8.9M, or €3bn overall. Comparatively, total sales for the 12 months of 2020 reached 414 and 406 in 2019.

H1 sales by year:

• 2019 – 208
• 2020 – 165
• 2021 – 344

Average asking prices for the first six months of 2020 and 2019 were €8.7M and €10.8M respectively, although 2019’s higher average sales price was a result of Lürssen’s Project JAGsale.

High transactions stem from pent-up demand, according to brokers. During the first half of 2020, just 165 sales were recorded as the first waves of coronavirus spooked buyers.

H1 2021 brokerage sales

“Denison had a strong Q2, building on a very solid Q1,” said Denison Yachts’ Bob Denison. “Sales are still ticking-up. So far in 2021, our team of brokers have sold 44 yachts between 24m and 56m, which is about a 35% increase from 2020.”

Earlier this year BOAT Business reported a record month of brokerage sales in May at 75, however, June swiftly took the mantle at 79 sales.

Popular sales months:

• May 2019 – 54
• Dec 2020 – 58
• June 2021 – 79
•  

“We have seen a very strong six months for sales, with solid activity worldwide and positive prospects for the upcoming months,” said Fraser chief executive officer Raphael Sauleau.

“Our sales of newbuild and pre-owned yachts are up 225% on 2020, and June has been very active, as is the outlook for the upcoming months.”

A high level of current enquiries for brokerage sales promises to see strong sales continue over the coming months, Sauleau continued.

Last month it was reported 51% of superyacht brokerage transactions were for American buyers. “The domestic markets are going really well, particularly in the US, which has one of the largest domestic markets of all,” said Camper & Nicholsons sales broker Tim Langmead.

“There’s definitely a boom going on over in the States, every boat that’s on the market has offers on it, unless they are overpriced or poor quality. It’s a market that everyone wants to be in right now.”

The average length of vessels sold in H1 of this year sat in line with previous years at 35.7 metres compared with 35.1 metres in 2020 and 36.1 metres in 2019.

Along with increasing interest from owners looking to upsize and new owners entering the market, one industry expert believed existing yachters now had higher confidence to sell. “The market overall has become stronger and the reason, I believe, is because last year vendors didn’t want to sell their boats because vacation options were limited,” said Sanlorenzo UK sales director Ashley Overton.

“Now prices are strong, they want to get on to their next boat and so they’re putting their boats on the market because demand is there.”

Sailing yacht transactions also tracked up a small amount on last year’s levels with 15 sales versus 12 in 2020 but were still lower than the 22 recorded in 2019, with motor yachts continuing to take the bulk of sales.

The average age of a superyacht sold in the first half of 2021 was 13.11 years old, versus 12.75 in the previous year and 13.94 in 2019.

When looking at volume, a total of 105,000 gross tonnes was sold in the first six months of this year, at an average of 306 GT per yacht. This figure was up considerably on previous years with H1 2020 seeing a total of over 46,000 GT sold and the same period in 2019 showing over 67,000 GT.

While the market is currently showing positive growth, Denison warned availability needed to be addressed going forward. “Inventory is still a concern,” he said. “Lower levels of brokerage inventory could of course result in lower sales numbers.”