Pre-owned Gulfstream Market Holds Steady, Report Notes

The pre-owned market for in-production large-cabin Gulftreams is holding steady, though prices on early model G650s are likely to dip below $60 million over the next 12 months, according to an inaugural Gulfstream quarterly market update report from Hagerty Jet Group. The Savannah, Ga.-based aircraft broker, which specializes in Gulfstreams, completed nine Gulfstream transactions worth $260 million during the first nine months. Its report is available for free upon request.

Inventory of for-sale G450s, G550s and G650s remains in the "seller's territory" at 7.6 percent, 6.1 percent and 7.4 percent, respectively, of the in-service fleets, the report shows. Average asking prices for the three models have remained fairly stable—$22.93 million for the G450; $30.74 million, G550; and $69.53 million, G650. However, the G650 market is split into two categories—“ferry time only” and "pre-owned," with the former commanding prices of $70 million or more and the latter edging toward $60 million, Hagerty Jet notes.

Both the G450 and G550 are now depreciating at less than 2 percent per quarter, though the G550 has fared better than the G450 over the past year, with the former dropping by 5.8 percent and the latter down by 10.9 percent. The G550 market is the most active in the large-cabin segment, with an average of three transactions per month, according to the report.