NEW YORK, NEW YORK--(Marketwired - Jun 20, 2013) - Earlier this month at Chelsea Piers in New York City, a select group of journalists gathered aboard the superyacht Katya to discuss the state of the ultimate high end union. Burgess, the world's leading superyacht brokerage company, hosted the event, showcasing the 150ft long luxury yacht which was delivered in 2009 from Delta Marine. Katya features lush interiors and abundant decks with a spectacular topside spa pool. She is available for sale for $34.95 million, and charters from $161,000 to $196,000 per week throughout the Northeast.
In the niche market of uber luxury goods at the top end of the spectrum there is a rarified group of the world's wealthiest consumers. What they are buying and for how much signals not only the ultimate status symbol but trends in the global economy. If there is one person who has his finger on the pulse of this elite group it is Jonathan Beckett, President and CEO of Burgess, whose clients include global leaders in industry, finance, and media.
Robert Frank, wealth reporter for CNBC sat down with Jonathan Beckett to discuss the superyacht market, the ultimate luxury lifestyle experience.
Frank: How has the yacht market changed pre-crisis to now?
Beckett: A yacht owner phoned me the other day and said 'What's the market like?' and I said, 'It's a fantastic market… if you're a buyer.' Pre 2008 it was very much a sellers' market. There was huge demand and the supply wasn't there to satisfy the demand. A number of owners were commissioning and building from two to five yachts and selling them during production for a premium. Today there's a huge supply in comparison to demand so prices are under enormous pressure. Prices have reduced substantially and no one is building on spec any more. There are a lot of deals to be done. That's the interesting thing about the American market. Americans understand about deals and there are fantastic yachts out there at fantastic prices.
Frank: What is the new geography of wealth? Where are the buyers coming from?
Beckett: The traditional markets were America, Europe and the Middle East, particularly Saudi Arabia. Those markets are still very much in play, however Europe is struggling a bit. The most active new market is still Russia and that whole block has a strong interest in buying particularly big yachts. The Gulf States market has come on very strongly, again for very large yachts. Our company has been involved in the design and commissioning of the world's largest yacht. It's taken five years to build, is 180 meters (591ft) in length and she will be the largest and fastest yacht in the world. At the top end of our market there's a big demand for the 100 meters (328ft) plus and $250 million dollars plus yachts. There are 15 - 18 of those size yachts in production which will cost anywhere from $250 to $500 million. Australia has also ridden the financial crisis much better than other countries and has a culture of water and sailing.