A tray of Rolex watches is on display at the London Watch Show on
March 19, 2022 in London, England.
Leon Neal | Getty Images
Luxury watch prices have reached a nearly two-year low in the secondhand market, signaling a reversal from the record highs seen during the pandemic for brands like Rolex, Patek Philippe, and Audemars Piguet.
According to WatchCharts, a luxury watch price tracker, the average price of a secondhand watch has fallen by 31% since March 2022. At its peak, the average price of a luxury watch in the secondhand market reached $45,108, and buyers were willing to pay up to five times the retail value for sought-after models.
related investing news
Paul Altieri, the CEO of watch resale site Bob’s Watches, commented on the situation, saying, “It was an unprecedented time in history where people were home captive. You also had a little bit of cryptocurrency and bitcoin run-up. What’s going on now is a happy, healthy correction.”
During the pandemic, with limited availability of watch models in retail stores, enthusiasts turned to the secondhand market for their luxury watch purchases.
Tim Stracke, CEO of Chrono24, a German-based online marketplace for pre-owned watches, noted that the price surge primarily affected three family-owned brands: Rolex, Patek Philippe, and Audemars Piguet. However, most other brands did not experience the same price increase.
Now, with individuals flooding the market to sell their inventories, overall prices have dropped. This decline has been particularly noticeable for iconic models like Rolex’s Daytona, Patek Philippe’s Nautilus, and Audemars Piguet’s Royal Oak.
Stracke explained, “When prices reach these super high levels, that also attracts a lot more sellers, so the supply of the most iconic pieces from the three brands tripled within just five or six months.”
Market Correction
Experts have been warning about a potential burst of the luxury watch bubble, along with the bubbles in cryptocurrency and other pandemic-driven trends.
The biggest luxury watch brands have experienced a slump in the past year. WatchCharts reports a 12% decrease in average secondhand Rolex prices, a 19% decrease in average Patek Philippe prices, and a 17% decrease in average Audemars Piguet prices compared to a year ago.
However, the recent declines seem to indicate a stabilization in the market. Secondhand prices remain significantly higher than they were three years ago. Since August 2020, overall prices have increased by approximately 20%, with average Rolex prices up by 26%, average Patek Philippe prices up by 94%, and average Audemars Piguet prices up by 100%.
For example, the Rolex Cosmograph Daytona 116500 model, one of the most sought-after watches, is currently listed at around $29,000, nearly double its original price. The average price for a Patek Philippe Nautilus 5711 Stainless Steel model is $103,357, three times its retail listing price of $34,890.
Pierre Dupreelle, managing partner at Boston Consulting Group, commented, “There have been some adjustments in 2023, but overall, prices have remained much higher than pre-pandemic levels. I don’t think it’s a burst of a bubble. As the economy stabilizes, we may see prices stabilize or even rise again.”
The relatively lower prices may present an opportunity for millennials and Gen Z consumers who have developed an interest in luxury watches and status symbols. A recent report by BCG found that 54% of Gen Z and millennial buyers have increased their spending on luxury watches in the past two years.
Brian Burns, a millennial adventure guide and owner of a Rolex Submariner, shared his perspective, saying, “I would love to buy another Rolex. Seeing the price of them fall kind of makes it less like a risky investment. You don’t want to pay more for something if you could just wait and pay less.”
Chan Hirunsri, a 20-year-old student at Penn State University, expressed his appreciation for watches, stating, “Personally, I really appreciate the craftsmanship of watches. I bought a Grand Seiko SBGA407 in May when prices were relatively low, and I am waiting to explore Rolex.”
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
