Luxury Watch Market in Switzerland: Second-Hand Prices Decline, Auctions Establish New Record Highs

Luxury Watch Market in Switzerland: Second-Hand Values Decrease, Auctions Set New Highs

The Swiss luxury watch sector concludes 2024 with a notable contrast. While the secondary market experiences a deterioration, the primary scene for high-valued, distinct, and historically substantial timepieces witnesses a rejuvenation. As the feverish speculation of the pandemic eases, the cost for numerous contemporary designs drops drastically. In this evolving environment, collectors are drawn towards the timeless beauty of scarcely accessible and historically significant timepieces. The market isn't just surviving, it's adapting.

Correction in the Secondary Market

Prices in the secondary market continued to shrink throughout 2024. Icons such as the Rolex Daytona and Patek Philippe Nautilus observed a decrease of around 30% to 40% from their peak prices in 2022. The WatchCharts Overall Market Index fell 5.8% in 2024, indicating a diminishing interest from investors in watches as speculative assets.

WatchCharts Overall Market Index

The descent is well-documented, driven by an excessive supply in the secondary market due to opportunistic sellers and flippers exploiting the hype. Rising interest rates and dwindling consumer sentiment negatively impacted demand for luxury items. The slowdown was particularly severe in China. A shift in perception worsened the industry's challenges, as watches moved from being perceived as solid investments to generally depreciating assets.

This correction addresses the desires of collectors who cherish watches for their craftsmanship, history, and design. As speculative buyers exit, new and avid enthusiasts acquire watches from famous brands at more reasonable prices.

Success in Auctions

Although disheartening for some, a positive perspective for the industry emerged in 2024. Auction houses reported outstanding results for uncommon and historically rich timepieces. Successful auctions in Geneva and New York hint at the continuous demand for singular and historically significant watches, regardless of their connection to cultural icons or limited production.

For example, during the Christie’s Rare Watches Auction in November, a 1935 Breguet No. 3218 went for CHF 1.92 million, far exceeding its low pre-sale estimate of CHF 100,000. Toward the end of December in New York, Steve McQueen’s Heuer Monaco sold for $1.4 million at Sotheby’s, surpassing its pre-sale estimate of $500,000-$1 million. A Patek Philippe Grandmaster Chime achieved $5.4 million at a June Sotheby’s auction, setting a new record for a modern timepiece.

This divergence between falling secondary prices and booming auctions reveals the transforming landscape of the luxury watch market. Speculative buyers, whose dominance escalated during the pandemic, are withdrawing, granting space for passionate collectors.

Opportunities for Collectors

Collectors are now presented with an opportunity to acquire iconic models that experienced price increases during the pandemic but have since returned to more typical price ranges. Models like the Audemars Piguet Royal Oak and Vacheron Constantin Overseas are now more accessible, and secondary market premiums for popular Rolex and Patek Philippe models, although still high, have significantly decreased. However, these watches remain difficult to acquire from authorized dealers, leaving the secondary market as the only reliable avenue for purchasing one.

Collectors also seem to be shifting their focus towards vintage pieces with historical significance. For example, Omega’s Speedmaster Professional Moonwatch or early Rolex Submariners are still desired. Paul Altieri, founder and CEO of Bob's Watches, one of the largest online pre-owned luxury watch dealers, reported a 20% growth in demand for Rolex models from the 1980s, notably Oyster Perpetual and GMT-Master models. He also noted a 42% increase in demand for green dial watches in 2024 compared to 2023, validating the trend towards uncommon timepieces.

Additionally, small-scale producers such as F.P. Journe, H. Moser, and others are gaining popularity through their artistry, innovation, and exclusivity. “Collectors demonstrate an increasing interest in these brands, which often contrast the large-scale production of established brands,” Altieri says. “These timepieces are frequently much more expensive, highlighting their rarity and the meticulous craftsmanship involved, which appeals to collectors but also makes the market highly sensitive to demand fluctuations.”

Industry Adjustments

Given the challenging market, luxury watch brands are adjusting their strategies. In its latest report, The Federation of the Swiss Watch Industry, showed a 4% decrease in exports in 2024. The majority of the decline came from China. The industry has also criticized the strength of the Swiss franc, which has hindered exports. Some Swiss manufacturers have even been forced to furlough employees and receive government subsidies in response to the downturn.

Despite these challenges, some positive developments and trends are emerging. To reconnect with younger, values-driven consumers, brands are focusing on storytelling, using social media platforms to construct their narratives.

Brands are also gaining traction through an increased acceptance of customization. Bespoke watches featuring personalized engravings or unique dials are becoming popular among collectors seeking exclusivity. Furthermore, the proliferation of online resale and auction platforms is democratizing access to new, pre-owned, and rare watches, extending the market beyond traditional retail stores and large auction houses.

A Market in Transition

The luxury watch market is transitioning away from the speculative frenzy of the pandemic and towards a focus on collecting and craftsmanship. Declining secondary market prices and flourishing auction prices indicate that passionate and knowledgeable collectors are driving the market. Brands must adapt to these changes and appeal to the values-driven consumers they want to reach.

The division in the market—affordable pricing for modern models appealing to everyday collectors and sky-high auction prices for unique, one-of-a-kind pieces—caters to every kind of watch fanatic, keeping them all hooked.

In the midst of this market transition, Bob's Watches observed a 20% growth in demand for Rolex models from the 1980s, particularly the Oyster Perpetual and GMT-Master models.
Despite the overall market decline, auctions for rare and historically significant watches, such as the 1935 Breguet No. 3218 and Steve McQueen's Heuer Monaco, continue to break records, proving the enduring appeal of these timepieces.
Brands like F.P. Journe, H. Moser, and others are gaining popularity among collectors, thanks to their artistry, innovation, and exclusivity, with prices often reflecting their rarity and meticulous craftsmanship.
Patek Philippe, Omega, and Rolex, being some of the most coveted brands, remain difficult to acquire from authorized dealers, making the secondary market the go-to avenue for enthusiasts looking to add these pieces to their collection.