World’s Largest Super Yachts Sink in Value as Global Recession Deepens
December 9th, 2008 | 3 Comments »Is the luxury yacht charter industry sailing into troubled waters?
The value of the largest super yachts that proliferate the Mediterranean yacht charter marketplace is plummeting as the global recession, financial crisis, and credit crunch really begin to bite. Even the yacht charter vacation market in the Caribbean, long the preferred destination for winter and spring luxury yacht charter holidays, is feeling the pinch.
Referred to as mega yachts and superyachts, these vessels were once the ultimate status symbol of the boom years, coveted by billionaire businessmen who wanted to show off their wealth. Now many superyacht owners are being forced to sell their new boats as their other assets fall, and dealers in the largest mega yachts are slashing prices as the global recession deepens and the financial crisis widens.
Offered at a fire sale price, new Benetti yacht ALIBELLA, which boasts a helipad and marble fixtures and fittings finished with gold trim is now available for just €24.5 million (£21 million). Launched in mid 2008, motor yacht ALIBELLA has discounted her price by €9.5 million - if a buyer can come up with the cash within a month.
Luxury yacht sales have drastically dropped off due to the recession. This yacht, ALIBELLA, is offering a deep discount to her buyer.
Luxury motoryacht ALIBELLA is one of many new, deeply discounted vessels to hit the sales market as the financial crisis and tightening credit crunch are predicted to grow worse before getting better. Like any other investors, these owners need some immediate cash and credit for their other business ventures.
The number of second-hand yachts offered at substantial discounts is dramatically up as well, amid evidence that tough times have hit the large yacht market. The 163ft Thunder B, which has a seven-meter swimming pool, is now available for €13.7 million, down from €18.9 million, and the asking price on the 146ft Candyscape has also been slashed, from €15.5m to €12.9m. The interior of the boat was designed by Candy & Candy, the upmarket property developer owned by brothers Nick and Christian Candy, and boasts a saloon with a giant entertainment system, including a pop-up flat-screen television.
The 150ft Midlandia, meanwhile, has been reduced in price from €27m to €19.9m. It comes with bullet-proof glass and an outdoor cinema; perfect for a security-conscious film buff with a few million to spare.
The charter side of the industry is also caught up in the financial pinch. Repeat customers, who often pony up €200,000 or more per week for a yachting holiday, are tightening their own belts and opting for more frugal vacations in land-based resorts.
Charter brokers are reporting inquiries for the all-important Christmas and New Year’s holiday period are off 50 to 60% from last year. This statistic is verified by the reduced charter rates some yachts are offering as incentives. In the past, many yacht owners sought 10 to 14 night minimum reservations at premium rates for Christmas and year-end bookings. With the prospects of no charter revenues a reality, premiums have been waived and owners are accepting reservations for charters as short as 5 to 7 nights.
The few charter customers that are submitting inquires know the pendulum of opportunity has swung in their favor. As seen in the global retail consumer-goods marketplace, buyers have become savvy shoppers, and know they can wait for bargains and discounted sales. The “take it or leave it” attitude of the yacht owners has been replaced by last-minute low-ball offers submitted by potential charterers. The normal window of booking 3 to 6 months in advance has disappeared as bargain hunters are seeking discounted charter rates just 4 weeks in advance of the year-end holidays.
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Tags: Candy & Candy, credit crunch, financial crisis, global recession, largest yachts, luxury yacht charter, superyacht industry, yacht ALIBELLA, yacht sales
