Are complicated watches from small fashion houses recession-proof? Watches that maintain stable prices on the secondary market

The watch market is slowing. How can you choose a watch that will have long-term asset value? One key to the solution is watches from small fashion houses. Sharon Chan, Director of Watches at Bonhams Hong Kong, explains the concept using as an example a watch that will be put up for auction on November 29, 2024.

The strength of small fashion houses amid a sluggish watch market

　As the watch market in Hong Kong slows, many collectors are taking a wait-and-see approach to the pre-owned watch market. However, over the past two years, the auction prices for pieces from smaller fashion houses have remained relatively stable, attracting attention from the market and buyers.

　At first, I was quite puzzled as to why prices had remained stable. However, the reason seems to be gradually becoming clearer. I am not only a manager of a watch auction, but also a collector. Although my collection is not large, it ranges from major brands such as Rolex and Panerai to smaller brands such as FP Journe and Richard Mille.

　Oddly enough, when I wear a vintage Rolex, people don't seem to understand my hobby, but when I wear a Richard Mille or FP Journe, one or two people notice the watch and make a comment.

　A while ago, I was asked by a media outlet, "If you could keep just one watch from your collection, which one would it be?" After much deliberation, I finally decided on the Richard Mille RM 005 FM.

　Although it doesn't feature any complications, this watch is comfortable to wear, the color and look are to my liking, and it's well-known. I also like the tennis player who serves as the brand's ambassador, which is another reason I chose this watch.

The defining factor of a small fashion house that will not lose its value

　Of course, not all watches from smaller fashion houses have the same stable market value, but a closer look at the winning bids at auctions held in 2024 reveals several factors that are unique to watches with stable prices.

Limited production

　One of the reasons is the limited production numbers. Bonhams Hong Kong will hold its first watch auction at its new headquarters on November 29, 2024. The auction will feature a De Bethune DB28. This is not just any DB28. Many early DB28s have blue cases, but this model, which makes use of the titanium material's natural color, is rare. There is an extremely limited supply of these watches on the market.

A movement realized through advanced technical expertise

　The second element is the movement, which demonstrates the brand's high level of technology. The Cabestan "Trumpésium" being auctioned uses rollers to display the time. Not only the mainspring and gear train mechanism, but also the balance spring and escapement are laid out vertically (from 6 to 12 o'clock), making it a rare and innovative movement even on a global scale.

Unique design

　And the final element is design. Due to the unique design of MB&F watches, demand has exceeded production in recent years, and it is said that orders are flooding in until the end of 2025. Due to the limited production number, reservations are said to be fully booked until the end of next year. The HM4 was inspired by the model airplanes that the founder played with as a child. Its unique shape may give the impression of being a toy, but in reality it is a first-class product that has been infused with the skilled craftsmanship of a watchmaker.

　If you are confused by the changes in the market and are unsure which watch to buy, it may be worth taking a look at small fashion houses that have the three elements mentioned here. These should serve as a guide for your purchase in an ever-changing market.