Part 1: 2018 Market Round Up with IYC
From the sale of 56.65m Kinta during the summer, to their representation of 84m colossus Icon 280 at the end of the year, it's been a great year for IYC. As we close the door on 2018, brokers Mark Elliott and Katya Grzeszczak give us an insight into the continued success of the world-renowned brokerage house, as well as an idea of the industry trends witnessed during the last quarter.
IYC has maintained steady growth over the last year, with figures on both sides of the market faring strongly as we move into 2019: “Our figures are very strong in both sales and charter, both are up considerably this year,” shares Mark. Katya concurs on the matter of the market’s continued stability, adding that the new construction side of things is also “proving to be in a healthy state.”
The brokers observe various trends that are contributing to a changing market, namely the emerging prominence of digital marketing. “We are using matterport virtual tours, videos and of course social media is a game changer,” shares Mark. The importance of digital tools and platforms has only good things in store for brokerage, with the transferral of information quicker and easier than ever, although Mark is quick to qualify that growth is always contingent on the stock market.
Despite stability, Katya notes measures that could be taken to strengthen the market, identifying a shortage of late model brokerage superyachts for sale in the 50m+ category. “This means that it is a great time for sellers of ‘get all the money’ for their recent model yacht if they were to list one for sale,” she explains. Despite this deficiency, Katya assures that the collateral effect of the decade’s economic downturn is on the mend: “Having visited many leading northern European shipyards this year, I can confidently say that the inventory is about to get replenished with a good amount of high quality product.”
Another market factor ever present in the mind of brokers is the size of the vessels that are moving. At the moment, Mark observes, yachts seem to be getting bigger, but within certain parameters. “The larger yachts that are under 500 tons have been the most successful. Once you exceed 500 tons, you need shore side management, pilots and incur many additional fees,” he explains.
As well as yachts getting bigger, they are also getting more experiential and adventurous, with greater capacities to explore far-flung destinations. “There is a definite trend towards more expedition/shadow yachts,” Mark claims, “People want to explore the unknown.” Katya is unanimous on the fact of demand for explorer capability yachts: “Many of these vessels actually have superyacht standards when it comes to interior, but owners ask for ‘ice class’ hulls to be able to cruise all around the world.”
In terms of the locus of these sales, the US market continues to dominate. “We continue seeing American buyers and owners as the most active players on the market, both in brokerage and new construction,” Katya tells us.
(Continued in Part 2)
"Our figures are very strong in both sales and charter, both are up considerably this year."