Wealth managers are repositioning yachts from pure luxury buys to strategic lifestyle assets within clients’ wider portfolios, industry figures say, as family offices and younger owners prioritise experience‑led ownership and alternative investments.
From passion purchase to portfolio component
Wyn James, head of asset owners for Asia‑Pacific at global investor services group IQ‑EQ, told The Business Times that the period between 2020 and 2022 saw a surge in demand for experience‑led assets, many of which produced strong returns. Today, family offices allocate more than 40% of their holdings to alternative investments, creating room for niche luxury assets such as yachts that carry cultural, emotional and potential financial value.
“The interest of experience‑led assets surged between 2020 and 2022, when many luxury assets delivered strong returns.”
James also highlighted a generational shift: younger clients are more inclined towards ownership that provides access to remote destinations and comfortable, high‑end experiences — a trend that has helped explorer and expedition yachts gain traction.
Market outlook and regional advantages
Market research firm 6Wresearch projects the broader Singapore yacht market could expand at an approximate compound annual growth rate (CAGR) of 5.6% through 2026, underpinned by rising affluence in the region.
James confirmed Singapore’s appeal is not only commercial but also regulatory. Pleasure yachts there are exempt from import duty and may qualify for goods and services tax (GST) relief when used solely for private pleasure — more favourable treatment than several neighbouring jurisdictions.
| Jurisdiction | Tax/tariff treatment mentioned |
|---|---|
| Singapore | Import duty exemption; possible GST relief for qualifying private pleasure vessels |
| Indonesia | 30% luxury tax plus VAT and import duty |
| China | Duties up to 10.5% plus 17% VAT |
The combination of tax incentives and Singapore’s reputation for stable trust planning has made it a favourable jurisdiction for owning and structuring significant yacht holdings, James told the paper.
Which boats are being sought?
Listings on regional digital marketplaces suggest buyer preference leans towards established European and international brands. According to YachtWorld and Yatco data cited, the most common names on Singapore listings include Princess, Ferretti, Azimut, Beneteau and Sunseeker, with other marques such as Sanlorenzo and Custom Line also present.
- Family offices have increased allocations to alternatives beyond traditional equities and bonds, opening space for luxury assets.
- Explorer yachts are gaining appeal for experience‑led owners seeking remote travel with high comfort.
- Regulatory and tax regimes remain a key determinant of where yachts are bought and domiciled.
However, James cautioned that macroeconomic shifts are altering buying patterns. Higher interest rates and tighter liquidity mean purchasers are more careful; demand has moved towards “more deliberate and strategic allocation”, he said, rather than impulse luxury purchases made during the pandemic years.
For prospective buyers and wealthy households considering a yacht as an investment or lifestyle asset, the analysis points to three practical takeaways: assess total cost including taxes and import duties, consider jurisdictional and trust planning advantages, and factor in financing conditions that can materially change the economics of ownership.
As the market professionalised, brokers, builders and wealth managers have adapted by treating yachts not just as objects of desire but as assets requiring governance, maintenance and tax planning — all elements that shape whether a yacht acts primarily as an experience or as part of a balanced wealth strategy.
With regional growth expected to continue and the younger generation prioritising experiences alongside returns, yachts are likely to remain a distinctive but increasingly mainstream component of high‑net‑worth portfolios across Asia and beyond.
