Sports watches, including some luxury sports watches, are soaring in price in the secondary market for luxury watches. It's easy to see why this is the result of money that has been lost due to the COVID-19 pandemic. However, we broadened our perspective and conducted an emergency survey on the "asset value of watches" among well-known auctioneers and watch specialists at the world's largest watch buying and selling platform. We report the results here.
CHRISTIE'S
Born in Switzerland, he began his career at a major auction house in 2005. In 2010, he joined Christie's in Geneva. After serving as a watch specialist in the rapidly growing watch markets of China and Southeast Asia, he was transferred to Bangkok in 2014 as a senior consultant. He has been in his current position since June 2019.
Q1. With the global financial surplus caused by the monetary easing policies of central banks around the world amid the COVID-19 pandemic, attention is being focused on the asset value of luxury watches. What are the hot sellers at auctions under these circumstances?
A1. We don't advise our clients to buy as an investment, but here are some "sellable" characteristics that watch collectors should consider before buying:
- Extremely rare and limited edition timepieces are always sought after due to their rarity, and often appear at auctions or private sales.
- Vintage timepieces, especially from legendary manufacturers like Rolex and Patek Philippe, are also essential for completing any watch collection.
- Spectacular designs and rare materials (colored dials, enamel, hand engraving, gemstone decoration) are becoming increasingly popular on the watch market.
Q2. As an auctioneer, when you look at the current auction prices and asset values of watches, do you think we are in a so-called "bubble" situation?
A2. We do not see a bubble in the watch market, but we have seen very strong growth in total sales and consistently strong sell-through rates (often exceeding 80%) across global auction houses and online auctions in recent years.
- Annual production volumes from legendary brands and independent watchmakers were always very limited even before the pandemic, so demand for the timepieces they make will unsurprisingly remain strong.
- The pandemic may have forced some brands to temporarily close their factories, but collectors will react very quickly and shift to vintage designs before the latest complications hit the market again. The market will react and evolve as it goes.
- Watches are a very interesting and unique category. Collectors generally invest for the long term, do their market research before buying, and rarely make hasty purchases or resell next day.
- Exceptional, rare and unique limited edition timepieces always stand the test of time and are rarely just passing fads in the market.
Q3. Looking at the current auction market, what watch brands and models should you pay attention to in terms of asset value?
A3. Recent results of Christie's watch auctions show that Patek Philippe and Rolex consistently command high prices. Brands such as FP Journe, Audemars Piguet, Breguet, and A. Lange & Söhne are also growing rapidly in the market.
Q4. What do you predict will be the future trends for luxury watches in the auction market? Please tell us your thoughts on trends during the COVID-19 pandemic and on developments after the pandemic.
A4: Luxury watches will continue to soar at auctions due to their exceptional craftsmanship, long-standing tradition, social status, and unique brand value. I am very optimistic about the future of the watch market.
"Watch collectors are now accustomed to the 'new normal' of pandemic life, where buying in person at auctions, in retail stores and online is becoming commonplace. Therefore, we will continue to host live auctions and previews as circumstances permit for more intimate interaction with our clients, while maintaining our premium Christie's online auctions to engage with an emerging generation of collectors who, despite their busy schedules and physical limitations, still want to enjoy the joy of purchasing a timepiece."
SOTHEBY'S
Born in London, he joined Sotheby's in 1997 after graduating from New York University. He then moved to another auction house, Christie's, where he became co-head of the watch department. He also served as head of the Phillips watch department, before returning to Sotheby's in 2018 to become global head of the watch department.
Q1. With the global financial surplus caused by the monetary easing policies of central banks around the world amid the COVID-19 pandemic, attention is being focused on the asset value of luxury watches. What are the hot sellers at auctions under these circumstances?
A1. Regardless of whether it was before or after the COVID-19 pandemic, Patek Philippe and Rolex have always been known as “blue-chip” brands, but what has become more noticeable is that there seems to be increased interest in models that are hard to obtain (stainless steel sports models such as the Daytona for Rolex, and the Nautilus for Patek Philippe).
There also continues to be interest in limited edition models produced in very limited numbers and vintage watches in exceptional condition.
Q2. As an auctioneer, when you look at the current auction prices and asset values of watches, do you think we are in a so-called "bubble" situation?
A2: I personally wouldn't call it a bubble, but would describe it as a healthy and promising development for the industry, invigorated by the growth of a new generation of young collectors around the world. Looking back at past financial crises, it seems that the value of luxury goods and portable assets has tended to rise. However, it should be noted that the current COVID-19 pandemic has restricted movement worldwide, preventing watch collectors from traveling and leaving them with money they would have spent on leisure activities. This is also a temporary aspect.
I think the fact that people can take their time at home to search for a watch they like, carefully consider whether to buy or sell it, and even have the time to do their own research is what is attracting attention to collectible luxury items such as watches and art.
Q3. Looking at the current auction market, what watch brands and models should you pay attention to in terms of asset value?
A3. I will refrain from giving a specific answer, but watches that are inherently difficult to obtain can sometimes fetch two to three times the retail price on the auction market.
Q4. What do you predict will be the future trends for luxury watches in the auction market? Please tell us your thoughts on trends during the COVID-19 pandemic and on developments after the pandemic.
A4. In terms of winning prices, there will likely be a plateau or cooling for certain brands, but our auctions have seen a huge influx of new collectors, even during the COVID-19 pandemic, at every venue.
The watch market has the advantage of being home to highly technical and attractive watches, and the wealth of knowledge among individual watch collectors. With more young collectors of the next generation becoming interested in and entering this field, I believe the future looks bright.
PHILLIPS
He is of Italian-Swiss descent. He previously held positions at Antiquorum Italian Watch Department, Deputy General Manager of Sotheby's European Watch Department, and Head of Christie's European Watch Department before joining Phillips in November 2017. He is currently based in Hong Kong and is also an international auctioneer.
Q1. With the global financial surplus caused by the monetary easing policies of central banks around the world amid the COVID-19 pandemic, attention is being focused on the asset value of luxury watches. What are the hot sellers at auctions under these circumstances?
A1. There is a wide variety of luxury watches at auctions. The most popular brands and models being sold at auctions recently include Rolex Explorers, FP Journe Tourbillons, Audemars Piguet Royal Oaks, and Patek Philippe Nautiluses. These are particularly popular among Asian and Japanese watch collectors.
These popular models will be on display at Phillips' Hong Kong Watch Auction XII, taking place on June 5th and 6th.
Q2. As an auctioneer, when you look at the current auction prices and asset values of watches, do you think we are in a so-called "bubble" situation?
A2. Of course not. I have been watching the growing interest in watch collecting for over a decade. Every year, many new players enter the watch collecting market, and it has continued to grow, especially due to digital transformation. And I believe the watch market will continue to grow.
For example, the recent Geneva auction saw a record number of online participants, the largest in Phillips' history.
Q3. Looking at the current auction market, what watch brands and models should you pay attention to in terms of asset value?
A3. Independent watchmakers, such as Urwerk and De Bethune.
Q4. What do you predict will be the future trends for luxury watches in the auction market? Please tell us your thoughts on trends during the COVID-19 pandemic and on developments after the pandemic.
A4. Collectors will seek out watches of the highest quality and rarity. Each season, the number of online bidders at our auctions grows and reaches new heights. Our recent Geneva auction welcomed over 2500 bidders and over 1 online viewers.
In addition to being seen as an opportunity to acquire fine timepieces, the auction now represents an unmissable rendezvous for a growing community of collectors to come together and share their common passion for watches.
