As of February 2025, the secondhand luxury watch market has experienced a notable decline in prices, continuing a trend observed over the past few years. This downturn is influenced by various factors, including market corrections, shifts in consumer behavior, and broader economic conditions.
Market Trends and Data
- Price Declines: In 2024, prices for pre-owned luxury watches from top brands reached a three-year low. Specifically, Rolex models saw a decrease of approximately 5%, Patek Philippe prices fell by 4%, and Audemars Piguet experienced a 7.5% drop in the secondary market.
- Extended Downturn: The fourth quarter of 2024 marked the 11th consecutive quarter of declining prices in the pre-owned luxury watch sector, indicating a sustained market correction since its peak in mid-2022.
Factors Contributing to the Decline
- Market Correction: The surge in demand and prices during the pandemic years led to inflated valuations. As the market stabilizes, prices are adjusting to more sustainable levels.
- Shifts in Consumer Behavior: While traditional buyers have become more cautious, younger, tech-savvy consumers under 40 are increasingly participating in the market. This demographic is more comfortable with online transactions and is driving growth in the pre-owned segment.
- Economic Factors: Broader economic challenges, including fluctuations in disposable income and changing investment priorities, have influenced purchasing decisions in the luxury sector.
Outlook for 2025
Despite recent declines, the pre-owned luxury watch market is projected to stabilize and potentially grow, driven by younger consumers’ interest and the appeal of sustainable, luxury investments. Brands like Patek Philippe have seen increased popularity, with sales surging by nearly 50% in 2024, indicating sustained demand for certain high-end models.