It is 6 months since we last reported on the brokerage market and in that time we have had a good opportunity to take stock and see what is happening. In January Yachtworld.com produced their first European market index report (which we published on our website) and so we now have a chance to review our performance against the wider European market in 2010.
The Yachtworld report contains many interesting trends but overall the picture is still confusing with glimmers and sparks of activity throughout the market rather than any strong and consistent trends. What we can draw from the report though is interesting and reflects much of our own experience:
- Overall in 2010 throughout Europe the number of boats sold was down 10% on 2009
- However the value achieved from these sales was higher with the recovery in prices achieved being led in the sector over 10.5 metres.
Closer analysis of the data shows that sales and sales prices in the UK lagged behind the rest of Europe for the first half of the year, as we reported in August, but moved strongly ahead in Q3. Used Powerboat prices were hardest hit in the year while those for sailboats improved. Overall we can conclude:
- Sailboats are holding their value better that Powerboats
- Anyone shopping for powerboats can expect more aggressive pricing in the coming months
- The sailboat market in Q3 recovered from a weak Q1 and Q2 performance with yachts over 16m more than doubling prior year values
- Pent up demand for larger boats remains and luxury boat buyers still have the funds to act on it.
- For those spending the most in the market we are seeing a move towards normal valuations, making this a potentially safer time to buy and sell
- Among smaller boats, quality boats at value prices are readily available especially in the powerboat category
Yachtworld concludes that the balanced UK inventory of both Sail and power brokerage stock plus the gains in total valuation achieved for the stock sold, indicate room for growth and recovery and that the UK may lead the rest of Europe going into 2011.
And how are we doing at Sea Ventures???………. Well our volumes of sales and listings were somewhat lower last year, for sure, when compared to 2009 but our sales values achieved and brokerage income were about the same, so like the report says it seems we are mirroring the trend for higher values and larger boats.
A snapshot of our listings of Jeanneau yachts in the main portals in February show 133 Jeanneau yachts for sale throughout the UK and Ireland with the 7 major brokers (excluding 15 Sunsail yachts). Sea Ventures have the largest number listed (15%) and also have the largest number of yachts in the 30’ to 50’ size range when compared to the rest.
Our sales performance was good with well over half of the boats listed with us in 2010 selling within 3 months and two thirds within 4 months. Providing the boats are priced correctly and, well presented, then we are finding buyers relatively quicker than most.
We have also noticed a resurgence of UK buyers. While a significant proportion of our sales are still going to Scandinavian and European buyers the larger number of UK buyers over 2009 is quite noticeable
And what about 2011??? ……… Well we have started off with a bang after the London boat show, with strong sales of sailing boats from 30 to 50 feet to both UK and Scandinavian buyers. As usual we need more boats to sell and have spread our net to other European countries to find good quality yachts for sale at interesting prices. This is a new departure for us and you will see some of the yachts we have found in our listings. Our partners in the Med are well established and ready to receive prospective buyers and arrange all the necessary paperwork in the event of a sale.
Our brokerage videos have been well received and we have even been given offers before viewings on the strength of them! We are in the process of improving our display of brokerage boats, within our website, and videos will feature much more prominently…. so watch out for these improvements in the next few weeks.
The season is nearly upon us and we are as ready and prepared as we can be and hope that we see many of you in the coming months
Tim
