Despite what can sometimes be an election year downturn, the latest reports seem to be indicating that overall, sales of luxury motor yachts are on the upswing. According to Baron’s, Wealth-X, a well-known authority on “wealth intelligence,” recently released a report which indicates superyacht sales are rebounding.
The report focused on ultra-high-net-worth individuals, (UHNWI), defined as those worth over $30 million, across five continents, to build a profile of a typical superyacht owner.
The report defines a “superyacht” as being more than 98 feet in length. Sales in that category have increased by as much as 24% over the last five years, spurred primarily by a significant drop in prices in large luxury motor yachts. According to the report, motor yachts are now selling for around $11 million, as compared to $16 million in 2011.
A New Generation of Wealth
One of the more interesting takeaways from the report is that those UHNWI’s surveyed were generally younger, and far more into the “unique experiences” wealth can bring, than “…accumulating replicable things.” The report went on to say, “Such uniqueness both confers and confirms high status for those who can secure such experiences.”
A luxury motor yacht is the ultimate expression of that philosophy. It not only offers the last word in luxury, but, it can be completely customized, is private and provides access to unique experiences in food, drink, travel, culture and entertainment.
The report concludes, “As the pursuit of luxury moves from goods and services to unique experiences, the ultra-wealthy are demanding that the returns on their most precious possession, time, are maximized in every way possible. Superyachts provide the pre-eminent platform to do this.”
It’s All About the Experience
As we look at the evolving landscape of the yacht brokerage business over the past few years, the report echoes what has been our own experience. We see the same kinds of things in a new generation of high-net worth thrill seekers, who are more interested in the kinds of things they can experience on their yachts — the places they can go, the kinds of events they can hold on them, etc. – than they are with things like the size, or the brand name.
The completely redesigned Ti Punch, currently for sale, is an excellent example of such a yacht. As the designer, Destry Darr said, the owners wanted to build a “fun, fun, boat.”
We have also seen a demand for motor yachts that depart from traditional layouts for brighter, open flybridge models that can create a direct, more intimate experience with the environment.
This also explains the rise in popularity of luxury yacht charters, where almost any whim or fantasy can be indulged, from a “spa at sea,” to a dinner party hosted by a celebrity chef, without the hassles of ownership.
Deciding on the new or pre-owned luxury yacht that is right for you, can be quite complex. If you would like to benefit from our expertise in these areas, or if you have any questions or comments about this blog post, do not hesitate to contact our Sales Specialists, or call us at (855) 318-6328.