The price of used Rolex and Patek Philippe watches fell to a new two-year low last month as demand for luxury watches continues to decline amid increasing supply.
The Bloomberg Subdial Watch Index, which tracks the prices of the 50 most traded watches on the secondary market, fell 1.8 percent to around $34,000 in October.
It is at its lowest level since 2021 and is down 42 percent since a peak of nearly $60,000 in April 2022.
The decline is due to a surge in the most sought-after Rolex, Patek and Audemars Piguet models during the Covid-19 pandemic. Watches were more readily available on second-hand resale websites and collectors had excess capital to spend on luxury goods.
But as interest rates remain at their highest in 22 years amid persistent inflation, the luxury boom appears to be coming to an end as collectors curb 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 getting a watch now, experts warn that the price of that watch is likely to drop even further.
Christy Davis, co-founder of UK-based trading platform Subdial, said in the company’s October update: “We are seeing growing downward pressure in the market, which could lead to further price declines as traders lower valuations to chase sales.”‘
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 a timepiece to sell has increased by 8 percent.
Price uncertainty, which measures the range of prices offered by different sellers for a watch, increased by 12 percent over the same period.
“As more watches become available at a wider price range, we are seeing people lower prices to chase holiday season sales,” Davis added.
An index of all Rolex watches fell 1.5 percent last month and is now down 27 percent since the market peak in April 2022, according to data compiled by Bloomberg and Subdial.
An index of Patek Philippe model prices fell 2.3 percent in October – and is down 47 percent since the peak.
For example, according to the Bloomberg Subdial Index, the price of a Patek Philippe Nautilus Travel Time 5990/1A-001 has fallen 20.5 percent over the past 12 months.
The price is currently $116,016 – down from its peak of $271,923 in March 2022.
The popular Rolex Daytona 116506 is now worth $96,181, down 17.5 percent over the last year, according to the index.
During the market peak in April 2022, the luxury watch was priced at $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 of used timepieces tend to sell for well above their retail price.
For example, a new stainless steel Patek Philippe Nautilus Travel Time 5990/1A-001 has a current suggested price of $68,600, according to the brand’s website.
Luxury watches can take up to a year to produce, meaning waiting lists for new models can be long, experts warn.
In order to get an item more quickly, customers can opt for a used model instead.
According to a Boston Consulting Group report cited by The Wall Street Journal, 29 percent of collectors reported paying more than retail price for their latest used watch.
Around 40 percent of buyers said one of their main reasons for the higher price was so they could avoid long waiting lists on the direct market.
Some older models have also been discontinued, making them more valuable to collectors.