Megayachts Owned By Austalians Has Tripled Since 2006

The number of Australians who own megayachts has more than tripled since 2006 as the nation’s biggest mining boom in a century drove up its currency to a record, enhancing a drop in prices caused by a supply glut.

Some 110 Australians possess yachts over 98′ (30 meters), up from about 30 yacht owners in 2006, as a 42% gain in the Australian dollar, and slower demand in the U.S. slashed the prices they pay by 70%, according to Australian Superyachts, a group of companies that brokers, staffs and services the yachts.

“The stars have aligned and created a window of opportunity for Australian buyers,” said Richard Morris, CEO of Sydney-based Australian Superyachts. “They’re like kids in a candy shop.”

China and India’s booming demand for Australian resources is spurring the nation toward its 20th year of expansion. The combined wealth of the nation’s 200 richest people expanded 23% over the past year as surging iron ore prices helped make Gina Rinehart the first woman to be ranked as the nation’s richest person and the first Australian with a fortune exceeding A$10 billion ($10.6 billion USD), according to BRW magazine.

The Australian dollar climbed to $1.1012 on May 2, the highest level since exchange controls were scrapped in 1983, aided by the Reserve Bank of Australia’s seven interest-rate increases since October 2009.

Morris negotiated this year for an Australian Yacht Buyer who purchased a 150′ megayacht in Florida for A$6 million, with the price dropping from the initial A$7.4 million sought partly because the Australian currency rose from 98 U.S. cents to $1.10 during purchase discussions.

“The seller wasn’t a distressed seller, he wanted the money,” Morris said. “U.S. boatyards are full at the moment, some of which are vessels that have been repossessed, and Australia’s booming economy has produced buyers looking for a bargain.”

The value of minerals and energy projects being developed in Australia, the world’s largest shipper of coal and iron ore, rose 31% to a record as a mining boom drives the A$1.3 trillion economy.

Retail sales rose in April by the most in 17 months as the economy recovers from its worst quarterly contraction in two decades. The sales report, released yesterday, supports the central bank’s forecast for the economy to accelerate after floods caused it to shrink 1.2% in the first quarter.

“The bulk of these new buyers are from the mining industry,” Morris said, without divulging details of the buyers. “They are very secretive and these yachts are bought and sold in a discrete manner.”

The government of Western Australian state, which accounts for 97% of the nation’s iron ore production, in November called for expressions of interest to develop Rous Head Harbor marina at Perth’s Fremantle port to cope with larger superyachts.

Both Rinehart and Andrew Forrest, founder of Fortescue Metals Group Ltd. (FMG) and Australia’s third-richest individual, hail from Western Australia and depend on iron ore for their wealth. Australia has 35 billionaires, up from 30, BRW Magazine said last month when publishing its annual list of the country’s 200 richest.

Prime Minister Julia Gillard has said the high currency is a burden on some parts of the economy, including manufacturers and exporters.

There are currently 4,385 superyachts in the world, boasting a full-time professional yacht crew, according to Lorenzo Pollicardo, Yachting Division Manager of Italian-based consultancy The Docks.

Current owners of the superyachts include Crown Chairman James Packer and Premier Investments’ Solomon Lew and Seven Group Holdings Kerry Stokes, according to Morris.

Source: Bloomberg, Gemma Daley

——————————————————————————————————————————————————

Denison Yacht Sales Import & Export

——————————————————————————————————————————————————