Now that we have attended the autumn boat shows in Cannes, Southampton, Newport and Annapolis, and from our analysis of the brokerage market in all 5 Berthon Sales Group offices in recent weeks, this is the Berthon view on yacht sales for November 2022 –
Production and series new yacht sales have slowed quite significantly. Particularly in the range under 50 feet – although there are signs of a slow down further up the size scale for some brands.
High quality new yachts are still attracting interest and are selling but lead times are now out to 2024 and beyond. Experience tells us that waiting more than a year for a yacht is a price that many clients will not pay.
Supply chain issues are becoming apparent throughout the yachting industry. New yacht deliveries in some cases are delayed as they lack significant equipment like engines.
Yacht builders, who did not order and cash flow equipment when orders at fixed prices were taken, are left with full order books to fulfil and margins are under pressure as they must buy equipment and materials whose prices have risen because of inflationary pressures. We fear that we may start to see casualties amongst less well funded manufacturers in the coming months.
Those who expect recent high quality pre-owned yachts to fall significantly in price will be disappointed as new yacht prices are rising because of inflation and deliveries are a long way out. Recent brokerage yachts continue to be a scarce resource.
Yacht funding across the trade, as well as for yacht buyers, is starting to tighten and rise in cost.
The more mature 70 and 80 footers with large running costs needing refit are a hard sell in the brokerage market. This is not helped by the supply chain issues, which make refit programmes a protracted affair as equipment is hard to source.
The COVID bounce has been replaced by a more considered market, which is totally as we expected. Quality, well-regarded marques both sail and power continue to sell and for better prices that was seen prior to COVID.