Articles and News
Luxury Watch Secondhand Market Sees Prices Plummet After Pandemic Surge August 10, 2023 (0 comments)
Englewood Cliffs, NJ--The once-flourishing second hand luxury watch market is witnessing a significant price drop, nearing its two-year low after a considerable surge during the pandemic. Key brands like Rolex, Patek Philippe, and Audemars Piguet, which previously saw a substantial increase, are now seeing a price downturn.
[Image via Pexels Commons]
According to the luxury watch price tracker WatchCharts, since March 2022, the average price of a second hand luxury watch has dropped by 31%. At its height, these watches were sold at an average of $45,108, even reaching up to five times their retail value in some cases.
According to a CNBC report, Paul Altieri, CEO of Bob’s Watches, described this period as unprecedented, with several people at home due to the pandemic and the rise of cryptocurrencies like Bitcoin influencing buying behavior. Altieri sees the current downturn as a "happy, healthy correction."
“It was interesting that the price hike mainly happened among three family-owned brands: Rolex, Patek Philippe and Audemars Piguet. But we did not see this for most of the other brands last year,” said Tim Stracke, CEO of Chrono24, a German-based online marketplace for pre-owned watches, per the report.
Stracke observed that the supply of the most iconic pieces from the three leading brands tripled in a few months.
Experts had previously expressed concerns about a potential luxury watch bubble burst, mirroring cryptocurrency trends and other pandemic booms. The top brands have seen a slump over the past year, with Rolex, Patek Philippe, and Audemars Piguet prices dropping by 12%, 19%, and 17%, respectively.
Per the report, despite this downturn, the market remains robust compared to three years ago, showing an overall 20% price increase since August 2020. Key models, like the Rolex Cosmograph Daytona 116500, are still priced much higher than their original retail values.
Pierre Dupreelle of Boston Consulting Group opines that this is not a burst bubble but rather a sign of the economy stabilizing, hinting at the possibility of prices stabilizing or even increasing soon.
The price decrease might be attracting younger consumers. A recent BCG report indicates that 54% of Gen Z and millennial buyers have increased their luxury watch spending in the last two years. For many, like Brian Burns and Chan Hirunsri, this is a favorable time to invest and appreciate the craftsmanship of these luxury items.
Learn more in the entire CNBC report.