YACHT CONSENSUS (Positive Consensus/Bear Market Indicator) Sales return to pre-recession highs

August 18, 2014


It appears the mega rich are becoming more comfortable parking or anchoring their money offshore...literally

It appears the mega rich are becoming more comfortable parking or anchoring their money offshore...literally

While retail sales for the common folk continue to languish, the luxury segment continues to thrive. Thank you polarization of society. On the extreme luxury segment of note, the sale of superyachts (boats greater than 24 metres  in length) has hit the highest level since before the financial crisis.

There were 221 sales of superyachts in the first half of 2014, a rise of almost a third from the same period a year ago, according to figures from Boat International Media. That represents a 66 per cent rise from the 74 yachts sold in the first half of 2009, the bottom of the market.

One broking company, Fraser Yachts, this week said it had sold its fifth yacht in just 10 days during the summer period, which is normally a quiet time for yacht sales. Edmiston, a UK-based luxury yacht broker, sold five yachts in five weeks during June.

It seems all those newly minted social media billionaires, Russian and Chinese tycoons need a place to hide some cash and out in the water is not a bad option. Demand isn’t slowing down. According to Superyacht Intelligence, there are 360 yachts being built this year, a number which is expected to rise to 411 – the same level as in 2013. That is still well below the 2008 peak, when there was an order book of 587 yachts.

A booming stock market will do that. It seems conspicuous consumption and peak economy/stock prices go hand-in-hand.