The secondary market for high-end timepieces from Rolex, Patek Philippe, and Audemars Piguet is experiencing a notable downturn in prices, attributed to an oversupply and prevailing economic uncertainties.
Despite this overarching decline, certain coveted models from these prestigious brands continue to fetch prices above their retail values. Analysts from Morgan Stanley and WatchCharts report that the value of pre-owned Swiss watches has diminished, driven by economic instability and volatility in the cryptocurrency sector.
Although the broader market indices reflect a downward trend, select Rolex, Patek Philippe, and Audemars Piguet models still command premium prices. However, even these high-demand models are showing initial signs of devaluation.
The WatchCharts Overall Market Index, which monitors 60 luxury Swiss watches across ten brands, has registered a decline for nine consecutive quarters as of the second quarter of 2024. This downturn has provided a rare advantage to Rolex buyers, who have historically contended with supply shortages and extensive waitlists.
Prices for these luxury watches have been on a downward trajectory since peaking in the first quarter of 2022, with a 2.1% drop sequentially in the second quarter and a 1.2% year-over-year decline. Morgan Stanley forecasts that this downward trend is likely to continue throughout the remainder of the year.
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