Yachts in the 70-140’ Range What’s Been Selling and Why?
Coming off of a year of robust sales growth in 2014, and with an economy still improving, 2015 continues to show promise for motor yacht sales in the 70 -140 ft. range. While taking a slight dip in May, sales have been brisk, with most brokers reporting that sales of pre-owned yachts have returned to pre-recession levels. As always, certain brands and sizes sell better than others, but overall, pre-owned yachts seem to be selling at higher prices on average, than they were a year ago.
With the strengthening economy, it is a good time for sellers, who, according to the Bradenton Herald, are now getting 90 to 95% of their asking prices, as compared with 75 to 80% during the recession.
By the Numbers
So far in 2015 a total of 66 boats have reported as sold in the usa in the 70 – 140’ range. The Average model year was 2006. The average length was 85 feet, and the average asking price was $3.1 million US.
26 boats, or 40% of total sales, were built in the USA, with the remaining 60% split evenly with 20 boats built in Europe, and 20 in Asia. The higher percentage of US built boats is a reflection of the desire for larger boats on average, and it has been more cost effective in recent years (due to shipping) for US builders to build big, however that is changing with the recovering economy.
What the motor yacht industry is not seeing right now is a lot of late model inventory. Very few boats were built in the five years during, and just after, the recession of 2008, so pre-owned boats on the market right now tend to have been manufactured in the early 2000s. This can easily be seen when you consider that of 66 total year-to-date sales, only 16 were 2009 or newer.
Tidbits and Takeaways
According to yacht industry publication, Trade Only Today, in 2014 there were over 30,000 boats sold in the US, 19% of which were sold in Florida, which comprised 46 percent of the total value of the U.S. market. Once again, Florida is proving the place to be for the motor yacht industry, with 90% of the boats sold to-date in our category — 70 -140’ — being purchased right here in Florida.
The largest slice of market in 2015 so far, has been the 70 – 90’, which represents 49 of 66 boats sold, or 75%. The highest percentage of Asian built boats could be found in this size category, along with the newest model year boats on average.
In the next size category, 90 – 110’, total sales were only slightly behind the largest category, 110 -140’, with mostly the raised pilothouse models selling well.
In that largest category – 110-140’, no Asian built boats were sold, more than half in this size range were Westports, and boats sold of these lenghts, were the oldest on average.
Hatteras has been the bestselling builder thus far, with the Hatteras 74/75 Motor yachts being the most popular models, followed by the 112′ Westports.
As we approach the big fall boat shows, 2015 promises to close out with some exciting models, and even more powerful sales numbers.