Megayacht Demand in Australia Continue to Rise

Thanks in large part to the soaring Aussie dollar and encouraged by plunging prices, Australia’s super rich are on a shopping spree for the ultimate luxury toy, the megayacht.

A drop in prices and several distress sales in Europe and the U.S. have made these 24-meter plus yachts affordable for Australia’s super rich. According to a report from Australian Super Yachts, a Sydney-based marine consultancy, prices have fallen by as much as 70% over the past few years.

“In the last 5 years, superyacht ownership for Australians has tripled,” Australian Super Yachts CEO Richard Morris told CNBC. Morris believes as many as 300 superyachts now sail in Australian waters.  10 years ago, there were just a handful and he expects the number to rise if the Australian dollar continues to appreciate. “A quality second-hand vessel worth $10 million a few years ago can now be acquired for as little as $4 million”

One example of the discounts hitting the market is the Mediterranean based, La Naturalle Dee. The 50-meter megayacht with accommodations for 12 guests and crew of 10, listed for sale in early 2009 for A$22 million. Now thanks to an eager seller and a soaring Australian dollar, it can be picked up for under A$7 million, a 70% discount.

The superyacht industry first came to prominence in Australia during the Sydney Olympics in 2000. In the last 10 years it has boomed into an industry that generates millions of dollars and creates thousands of jobs. Sydney, Melbourne, the Gold Coast, Brisbane and Hamilton Island all have super yacht marinas, while another is being built near Perth to service the mining magnates of Western Australia.

As many as 10,000 Australians now crew on super yachts around the globe, which is more than the total number of sailors serving on Royal Australian Navy vessels.

Donna Morris runs a recruitment company that trains staff to crew the megayachts. She says a good crew member can earn as much as A$120,000 dollars per year and Australian workers are increasingly in demand. “There would be about 20% of the industry now represented by Australians,” Morris said.

Soaring demand for the multi-million luxury yachts, comes on the heels of Australia’s growing wealthy population. According to Australian magazine BRW’s rich list there are currently 35 Australian billionaires, up from 27 last year, while 150 Australians have personal wealth in excess of A$300 million.

“To purchase a superyacht is the ultimate trophy of wealth and success,” says Richard Morris and more and more Australians are now doing that.

Source: CNBC