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Prices for luxury yacht

In 2008, the luxury yacht building industry was failing amidst the global economic downturn. News reports told of the value of superyachts nose-diving because of the credit crunch, with dealers slashing their prices and owners selling their vessels for much less than its original worth. "Stormy Seas for Yacht Makers" headlines would say. "Yacht Industry in Troubled Waters."

That was three years ago, however, and the industry has rebounded since. Total yacht sales in Europe and the U.S. in the first quarter 2011 had 7,469 yachts sold at a total value of $1.14 billion. A 45-foot yacht has an average price of $550,000-650,000. Global demand for private luxury yachts has been growing steadily; sales growth is at 5-10% every year. Even the Chinese government is expanding its yacht building sector, and if this move pulls through then we will see luxury boat owning as part of the new Chinese lifestyle.

So how did the business survive? One reason may be the time it takes to build a yacht. Ships require time for planning, building and launching; shipyards had standing orders from 2008 till 2011, and demand for more yachts are greater than what are available.

And the demand for more yachts is increasing. Yacht chartering is the most popular and most expensive activity in the world. It's a growing trend among the wealthy to have trips that offer more than the average tourist vacation package. And more baby boomers are splurging on travel as they approach retirement age. It's a way to express success, youthfulness and wealth. And yachts are such powerful status symbols.

If the rate of yacht sales keep up, then having them built and selling them before they are launched will prove to be lucrative indeed. Imagine the profits gained by enterprising businessmen whose boat orders were waitlisted during 2008; now that the economy has recovered, those yachts have gone up in value and would have changed hands even before they touched the sea.

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Author: admin
Submitted: Oct 7, 2011 - 12:09 AM (Edited Jan 18, 2012 - 10:24 AM) |
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