Superyachts are now being built in Asia, with major players in Shanghai, Singapore and Hong Kong

Superyachts, once a luxury commodity produced only within the prestigious circle of historical European shipyards, are now available closer to home, much to the delight of boat lovers with deep pockets. Ambitious commercial shipyards on the mainland have been picking up the manufacturing of steel-hull superyachts.

There obviously are incentives for buyers to choose local products. On the mainland, the effective tax rate is over 40 per cent of the total purchase price for a foreign vessel, at least 10 per cent higher compared with ones made in China.

Domestic players manufacturing custom-made superyachts at competitive prices include Shanghai's Double Happiness, Sunbird in Hunan, Singapore's Raffles Yacht operating out of Shandong, and Hong Kong's Cheoy Lee, whose shipyard is in Guangdong.

Roger Liang Chong-wai ran a shipyard in Italy for 10 years before starting afresh with Kingship, based in Zhongshan, Guangzhou in 2004.

"Although my family business involves the industry, I didn't know much about the mechanical side until I took over the shipyard in Italy," he says. Liang had to buy the shipyard because it was the only way he could keep his yachts when it filed for bankruptcy. The decade of running a foreign shipyard gave him a better understanding of the trade, in terms of business and manufacturing. About nine years ago, he decided to move the base to China for its proximity to a growing market, skilled labour and abundant suppliers. His shipyard, spanning a total of 24.3 hectares and with more than 100 staff, focuses on building steel-hull superyachts over 24 metres in length.

The yachts are built in compliance with Lloyd's Register or RINA and MCA LY2 certificates - all internationally recognised quality control standards. All the compartments are shipped directly from Europe for assembly in the China shipyard.

The price range for imported luxurious superyachts can exceed HK$500 million. Kingship's most recent achievement, Star, a 42-metre yacht equipped with a state-of-the-art mechanical heart designed by famous Dutch firm Vripack, is priced at HK$128 million. It comes with two salons, a master bedroom and four guest suites, a jacuzzi and an open deck. The yacht can accommodate up to 12 guests and 10 crew members.

Mainland-based operations not only enjoy lower tax rates, but also lower labour costs. "Making a superyacht is a very labour-intensive project," Liang says. "I have to pay at least €40 to €50 [HK$400 to HK$500] per hour for a worker in Italy, but in China, it's about one-tenth of that. Do the maths."

Aspiring owners can have their own design team and engineers to build their dream home on the sea. The process takes about two years.

"Owners can be very much involved in the process. Often the husband and the wife will be looking at different things," Liang says.