This year’s Monaco Yacht Show underlined its importance and position as the World’s number one superyacht event, with a list of impressive firsts and, of course, some breathtaking yachts.
As the shining epicentre of the superyacht world, Monaco Yacht Show is incredibly important for all sorts of reasons. It acts as a bell-weather, reflecting the health and vibrancy of the market, and also showcases the design and technological trends that will shape the yachts of tomorrow. And on both counts the omens look very good indeed.
Bigger, newer, better?
There was lots of good news around, with a fleet that was younger and more valuable than ever, headlined by not one, but two 100m plus yachts, the first time this has happened at the show.
The average age of the fleet is an interesting piece of intel. Traditionally, the Monaco Yacht Show has been dominated by the brokerage market, which makes sense given it is the much larger sector. This dominance has seen the average age of the yachts on display traditionally sit well above 15 years, but we have seen that average come down in recent years.
For 2019 we saw the average age of yacht at just five years, compared to over 10 years in 2017. In part, this suggests the brokerage fleet age is coming down, but such a seismic shift can only be brought about by far more new vessels being exhibited. And new yachts are usually exhibited by the builders rather than brokers.
Admittedly, this five-year figure was for the total fleet, including yachts not actively for sale and charter vessels. When you look at the for-sale fleet, the average age rises to nearer eight years, still lower but not as big a drop. And do bear in mind that the 10 year figure we quoted for 2017 was also based on the entire fleet and not just yachts for sale.
This year will include 75 yachts for sale. This marks a huge jump from 2018, when there were just 52 yachts for sale.
Charter influence
The ongoing trend for large numbers of charter yachts to be dislayed at MYS is worth mentioning. With the show ostensibly a sales event, these charter yachts can skew the market picture. But they also present a more complete picture for buyers, showcasing new designs and brands.
Charter yachts give builders the opportunity to display yachts that would otherwise disappear into private ownership, so there are some real benefits to be had from charter yacht inclusion.
Values on the up
With the average LOA staying relatively level year-on-year at around 48m (160ft), the far newer 2019 fleet can be considered the main reason for the average value of the vessels on show to rise from $27m in 2017 to $33m this year.
Another major reason behind the MYS fleet’s value is that top tier of large yachts that always grab any show’s headlines.
This year saw two 100m plus vessels on show for the very first time, with the 112m (367ft) TIS (only available for charter), and the 106m (347ft) AMADEA. Both of these impressive vessels come from the Lurssen stable, underlining the German yard’s dominance in the large yacht sector.
Monaco Yacht Show 2019: Market Conclusion
The two stand-out headlines from this year’s show were a far newer fleet and the corresponding average yacht value, along with more yachts that were not actually for sale, including a noted rise in charter yachts.
This in-turn points us to a more dominant line-up of yachts direct from yacht builders, rather than brokers. It is no secret that builders are keen to forge direct relationships with yacht buyers, but no-one should discount the importance of the broker in making things happen and how important the true brokerage market is for keeping the wheels turning. For a 100m yacht to sell there is a very good chance a smaller older yacht will need to find a buyer.
Away from these industry nuances, what we can say, with absolute confidence, is that Monaco remains the jewel in the superyacht crown and the place to go if you want to really engage with the large-yacht world.
