Record-breaking first quarter for Denison
In the first quarter of 2021 (Q1), Denison sold over 40 superyachts, surpassing 2018, 2019 and 2020, respectively. The Florida-based firm is building on what was one of its best years for yacht sales in 2020, selling 83 superyachts, with an annual growth of over 13%. “Our industry is still riding the great wave of 2020,” said president, Bob Denison. “Our first quarter numbers set new records for us organisationally across all revenue categories.”
Denison expects 2021 to be its best year in a decade, global yacht sales haven’t seen a first quarter this strong since 2018. Data reveals that the US makes up about one-third of global boat sales. In North America, 9,336 boats were sold in Q1 2021 compared with 6,526 boats sold in Q1 2020. Europe and Asia also experienced a strong first quarter with a significant increase in yacht sales compared with Q1 2020 and 2019, said Denison.
Why is there a noticeable increase in yacht sales worldwide? Possibly, a “you-always-want-what you-can’t-have” situation–travel restrictions during the pandemic may have increased people’s desire to get outside or vacation safely. Boats and yachts provide that escape for people around the world.
Denison reports that its Q1 performance in North America may be due to more new superyacht buyers. First-quarter regional boat sales in the US from 2008-2021 reveal that the south east sells three times more yachts and boats than the north east or the mid-Atlantic regions. Almost 50% more than the north east and mid-Atlantic combined.
“The first quarter of 2021 has been strong due to continued demand from 2020,” said Denison. “Yachting’s competitive industries, such as skiing and higher-end vacation experiences like cruises, are still being affected by extended lockdowns, which have created a special opportunity for our industry.”
Florida is among the most desirable boating destinations. The third most populated state makes up about 25-30% of all US boat sales, said Denison. Florida experienced its best Q1 in over a decade with a leap of 1,008 more boats sold in Q1 2021 than Q1 2020.
Following a strong start to the year, what of the challenges in 2021? “New construction opportunities and good deals on the brokerage market are very hard to come by. I expect this to be the great challenge our industry faces in 2021,” said Denison.