As we hurtle towards the start of the yachting season in the Northern hemisphere, we are starting to see some trends develop in the yachting/yacht sales market, although the coming quarter will be very telling and will map out the likely shape of the market for the rest of the year.
After an international Berthon Sales Group team meeting, looking at all the areas that we cover, this is the direction of the market for March 2023 –
As the economic situation changes, buying on currency shift is an important part of the market today. This is particularly evident in Sweden – with Swedish buyers not much in evidence but overseas buyers with Euros and US$s, who can take advantage of a relatively weak Swedish Krona, buying at great prices compared with yachts available in their home market.
The motor yacht market in the Mediterranean is showing good, early signs of activity with larger numbers of UK buyers in particular. These buyers are taking advantage of the possibility of using yachts outside the UK as they are able to own ex-VAT yachts providing that they respect the TA rules.
Prices have hardened. Across the board, yacht sellers need to be realistic about the current market place and we are seeing many cases where they are out of sync with current pricing. Now is not the time to be bullish on price. Just because there is still a listings shortage does not mean that buyers will over pay in this market. They prefer to wait.
New yacht sales are suffering from the current lead times and price increases that make new yachts uncompetitive in comparison with the brokerage market. Buyers in this market are not prepared to pay uplifts of anything up to 20% against 2022 prices.
Mediterranean hot spots like Palma continue to be very full (particularly as the Club de Mar redevelopment has reduced the mooring capacity on the island) and there is no indication of yacht owners wanting to save money to move to cheaper berths.
Some segments of the service and repair market are slowing – this year hydraulics are in and composites seem to be out. This is a cycle that we monitor and at this stage we believe it to be normal market movement.