The Longest Shortage
If you are looking to buy a very large yacht (80 metres upwards), Edmiston has been researching the market with startling conclusions.
In spite of an unprecedented boom in the construction of very large yachts very few have come onto the market.
The reasons are quite straightforward. 18 per cent have either been commissioned or bought by members of Royal families for whom market potential is irrelevant and ownership is paramount.
48 per cent are owned by private individuals with no interest in any commercial discussion. 24 per cent are privately owned, offer a limited amount of charter but have neither the need or desire to sell. These two groups account for 90 out of the top 100 yachts.
Of the ten remaining, four are for sale off market with little or no price compromise. That leaves six yachts actively for sale. Of the six, four are valued at well over €100 million.
Such is the rarity of yachts of this status that the sales price can be considerably in excess of their original cost price. In other words replacement inflation has become the governing factor.
Traditionally Edmiston has always advised clients that yachts should not be seen as an investment. However, the rarity factor should be seen in light of two dynamics:
• The market has matured and new-to-yachting owners who commissioned 50 metre yachts ten years ago are now the owners of 80–100 metre yachts.
• The unprecedented increase in global wealth has given an increasing number of entrepreneurs the funds to buy very large yachts.
Supply and demand coupled with a quantum leap in design sophistication means that fewer yachts are available as fewer shipyards are capable of building to the size and standards today’s owner requires.
......... AND THE EDMISTON SOLUTION
At 50–60 metres there is a reasonable number of yachts to give you a choice and a competitive price. Between 60 and 70 metres, the rarity factor is already becoming an issue. At 80 metres and above, the chance of finding exactly what you want is currently a maximum of six per cent and you are likely to be paying a considerable owner’s premium for the benefit of immediate availability.
Edmiston is currently putting together a number of new construction projects for clients that have a vision of seeing both the world and a return on investment.
Working with a select group of shipyards and a hand-picked team of designers, we will advise you how to have an exciting and rewarding experience before, during and after the construction of your yacht.
To discuss the principle as well as a project contact an Edmiston broker.
Please click here to view the World's top 100 Yachts above 80 metres.
25th October 2017 |