This month, SuperYacht Times is interviewing a range of industry leaders in the brokerage sector to find out their views on the 2018 superyacht market. Today we hear from Glynn Smith, a broker for Worth Avenue Yachts, who initially began his love for the yachting industry with an interest in sailing. Having come a long way since being part of a crew himself, Smith shares his in-depth knowledge of the industry and predicts what is still to come in 2019.
In 2017, 284 30+ metre used yachts were sold. Similarly, in 2018, around 280 (to be confirmed) used yachts were sold. How does your sentiment of the market compare? Do you see that the market is stable or growing?
I would say we are seeing a consistent slow but steady growth and those that are veteran owners are gradually moving up in size. The recent strong economy in the USA has certainly given this a boost. Let’s see how long this lasts!
Have you seen a shift in clients in the past year? For example, in nationality, age, gender or occupation - or any other observations you have noticed.
There is still no doubt that more or less 50% of the world market is derived from US clients. We are noticing younger clientele entering into the market also. There has been a lot of talk about China/Asia but I sincerely think this will take many years to evolve due to the culture towards yachting.
What is your view on the pricing of yachts? Are there fewer reductions in price or are yachts sold closer to their asking prices?
The multimillion-dollar question! I cannot stress how important it is to price the yacht correctly. You don’t test the water on pricing, you should know what it is before putting a yacht up for sale, buyers are equally knowledgeable and likely have more market data than the sellers. Equally is the seller a real seller? That really helps! On average you can expect anywhere between 12% to 20% difference in asking price to selling price. Don’t confuse this from the original listing price.
Across the board, we are seeing good activity. There has been a distinct lack of young pedigree-built yachts on the market for some time now.
Last year was very active and we have noticed just a slight slowdown the last few months. Not much occurred from FLIBS but we anticipate another push before the Med season. As long as the economy still moves ahead, we should be in a good place. The noticeable shift of power in the US government may or cause for some clients to pump the brakes and see how things settle. I am looking forward to continuingly please my clients with exceptional service!
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