Pre-owned luxury watches: prices drop or rise depending on brands and segments
During the coronavirus pandemic, the prices of pre-owned luxury watches have skyrocketed. The peak was reached about two years ago. Since then, prices have actually declined. In some segments, they have plummeted, while for some watches, prices have continued to rise. Let's take a look at the prices of pre-owned luxury watches in the summer of 2023.
Luxury Pre-Owned Watch Market: Recent Trends
The Bloomberg Subdial Watch Index fell 1.4% last month. It is now down 16% compared to 2022. The index tracks the 50 best-selling watches on the pre-owned market by revenue. It primarily includes models from Rolex, Patek Philippe, and Audemars Piguet. According to Bloomberg, three factors are behind the decline in prices for very high-end watches:
- Higher interest rates
- Fragility of economic growth
- Fall in the value of cryptocurrency values
The combination of these three factors has increased the supply of pre-owned luxury watches and driven prices down after the 2021 surge. Some models have experienced a real rout. For example, the pre-owned Patek Philippe Nautilus Travel Time was estimated at over $270,000 in March 2022. Today, they are trading around $125,000.
Some affordable luxury watches, including models from Omega and Cartier, are much more stable, as prices for the most popular and high-end Rolex, Patek Philippe, and Audemars Piguet models continue to fall on the pre-owned market.
Affordable luxury watches continue to rise
Besides Cartier and Omega, some mid-priced watches from brands such as TAG Heuer and Tudor are bucking the trend, according to data from Subdial, a UK-based pre-owned watch seller.
These more entry-level luxury watches have seen their prices increase by 17% in one year . This trend is explained simply. Buyers, more cautious, are looking for cheaper alternatives. Collectors and enthusiasts are therefore favoring undervalued rare watches and, in some cases, smaller watches .
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Second-hand luxury watches with small dials are in fashion
For example, the Cartier Santos watch , known as the Galbée , is much smaller than the average watch with its dial measuring only 28 millimeters and is very popular. It represents an excellent example of the rise in popularity of so-called "neo-vintage" watches in the 1990s .
The watch in the Bloomberg Subdial Watch Index with the best price performance over the past 30 days is also a smaller watch. The Rolex Datejust 36 outperformed all other models made by the largest Swiss watch brand. Its value increased by about 3.4% in one month. The worst performer is the steel and gold Rolex Daytona , whose value declined by about 7%.
According to a report by Morgan Stanley analysts, prices for pre-owned luxury watches are expected to continue to decline in the third quarter due to high supply. Is this a good time to grab a bargain? Who knows!
