The price of used Rolex and Patek Philippe watches fell to a new two-year low last month as demand for luxury timepieces continues to decline amid rising supply.
The Bloomberg subdial watch indexwhich tracks the prices of the 50 most traded watches on the secondary market, fell 1.8 percent in October to about $34,000.
It is at its lowest level since 2021 and has fallen 42 percent from a peak of almost $60,000 in April 2022.
The drop comes after a surge in the most in-demand Rolex, Patek and Audemars Piguet models during the Covid-19 pandemic. Watches were more easily available on second-hand resale websites and collectors had excess capital to spend on luxury goods.
But with interest rates hovering at their highest levels in 22 years amid persistent inflation, the luxury boom appears to be coming to an end as collectors slow their purchases.
The Bloomberg Subdial Watch Index, which tracks the prices of the 50 most traded watches on the secondary market, fell 1.8 percent in October
However, if an investor is thinking about launching a watch now, experts warn that the price is likely to drop even further.
Christy Davis, co-founder of UK trading platform Subdial, said in the company’s October update: ‘We are seeing increasing downward pressure on the market, which could lead to a further downward price decline as dealers cut valuations to chase sales. to hunt. ‘
According to Subdial, the number of used watches available on the secondary market has increased by 5 percent since August – and the average number of days it takes for a timepiece to sell has increased by 8 percent.
Price uncertainty, which measures the spread in prices offered for a watch from different sellers, increased by 12 percent over the same period.
“With more watches available at a broader price range, we’re seeing people lower prices to boost sales during the holiday season,” Davis added.
An index of all Rolex watches fell 1.5 percent last month and is now down 27 percent since the April 2022 market peak, according to data compiled by Bloomberg and Subdial.
An index of Patek Philippe model prices, meanwhile, fell 2.3 percent in October – and is down 47 percent since its peak.
For example, according to the Bloomberg Subdial, the price of a Patek Philippe Nautilus Travel Time 5990/1A-001 has fallen 20.5 percent over the past twelve months. Table of contents.
The price is currently at $116,016, down from the March 2022 high of $271,923.
The popular Rolex Daytona 116506 is now worth $96,181, according to the index, which has fallen 17.5 percent in the past year.
At the April 2022 market peak, the luxury watch cost $185,464.
Prices of the popular Rolex Daytona 116506 (left) and the Patek Philippe Nautilus Travel Time 5990/1A-001 (right) have fallen since the market peak
The most sought-after models for pre-owned timepieces usually sell for well above their retail price.
For example, a new stainless steel Patek Philippe Nautilus Travel Time 5990/1A-001 has a current MSRP of $68,600, according to the brand’s website.
Making luxury watches can take up to a year, meaning waiting lists for new models could be long, experts warn.
To receive an item faster, customers can opt for a used model instead.
According to a report from the Boston Consulting Group, cited by The Wall Street Journal29 percent of collectors reported paying more than the retail price for their most recent pre-owned watch.
About 40 percent of buyers said one of the main reasons for paying more was so they could avoid long waiting lists in the primary market.
Some older models have also been discontinued, making them more valuable to collectors.