Why has Burgess experienced such dramatic sales success since January 2020? We spoke to Senior Partner and Head of Sales Richard Lambert to find out.
Despite the very challenging environment, Burgess' Brokerage team has delivered a very strong performance over the last 18 months. Since January 2020 we have placed no fewer than 53 owners on new yachts and found two owners new berths in the Mediterranean. Interestingly 23 of those yachts were over 50m and 30 were under 50m, which shows encouraging interest in that sector.
Secrets of our sales success
There are several factors behind our market-leading performance, not least of which is the unique Burgess structure where each of our highly experienced brokers is directly employed rather than contracted, which encourages them to share global market knowledge across the team and find buyers for yachts anywhere in the world.
Also, because Burgess is a full service yachting company, we were able to assist long-term charterers to step into ownership where they have the freedom and flexibility to enjoy yachting whenever they want, and we also have the yacht management expertise to make ownership not only stress-free but entirely enjoyable.
We can't forget too how we accelerated our investment in innovative digital marketing tools that enabled us to get clients on board yachts regardless of travel restrictions. Our portfolio now includes photography, video, 360 virtual tours, walk-through tours and live tours with captains and brokers on hand. Where Burgess leads, others follow, and they're quite commonplace now but in Q2 2020 they gave us a significant advantage.
Global brokerage market insights
The market slowed significantly in Q2 2020 due to international travel restrictions but 12 months later the market is outperforming the corresponding periods from 2017-19 by 139 percent, in part due to a strong American market both domestically and buying yachts from Europe, but also an active global market.
The data also show a remarkable difference between the number of yachts sold and those new to market. Series and yachts built on spec have also sold exceptionally well, even those with delivery dates over 12 months distant. Indeed for many 40-60m yachts delivery dates are now in 2024.
The difference between motor yacht sales in Q2 2020 and 2021 is stark. As ever, the sub-50m market is driving the volume of sales but the real acceleration is in the 50m-plus sector, with more sales in May and June 2021 than in any month since 2017.
Comparing the length of yachts sold in Q2 2020 and 2021 we see increases by factors of between 3 and 8, except in the 70m-plus sector, which remained steady. Demand in the 50m-plus sector remains strong with Amels, Benetti, Heesen, Sanlorenzo and Turquoise signing contracts for at least two 50m-plus projects each this quarter.
However reduced availability and lengthening delivery times will encourage buyers to maintain focus on the brokerage market. We also see that in Q1 and Q2 combined, there have been 86 sales over 30m - 30 percent of all yachts sold - split equally between yachts built on spec and new projects sold.
In summary the market remains buoyant but we do expect sales to slow as the year rolls on as fewer yachts come to market and build slots move into the distance. Don't forget too that in a tightening market, the need for an experienced, knowledgeable broker is greater than ever - not just for these global insights but for our understanding of real market value. We have in-house access to technical experts to advise on refits and upgrades, the most experienced yacht management team in the business to support you with insights on running costs and maintenance. Insurance, charter management, for any and every aspect of yachting, we do it all as a team. That's why we're No.1.
If you have any specific questions about the market or you are thinking of selling and would like a valuation based on the market now, we would be delighted to help. Please get in touch.