Luxury watches market booming across Australia

Ever thought about owning a Rolex or Patek Philippe? Well now might be the time with the global luxury watch market booming.

Luxury watch is a booming market.

Ever thought about owning a Rolex or Patek Philippe? Well now might be the time with the global luxury watch market booming.

The sector is valued at about $72bn globally and is expected to grow at anywhere between five to 12 per cent annually over the next eight years, according to market insights.

Fuelling the growth is people looking at watches, not just as fashion statements, but as potential assets, with rare, pre-owned watches surging in value over recent years, outpacing tradition investments.

“I think people are getting a bit more savvy in the way they’re investing,” said Luke Fulton from Vintage Watch Co, which specialises in selling pre-loved watches in Brisbane and Sydney.

“We saw a marked increase in investors in the last five-six years. We also called them flippers in the market because they’re there just to turn a profit.”

Joseph Hodges of Harrington and Co in Woolloongabba with some rare and collectable watches. Picture: John Gass

And turn a profit they would, Mr Fulton said, with people able to make hundreds of thousands of dollars with a single timepiece.

“From 2020 to 2022 some of them saw 50 to 100 per cent increases depending on the model whether they were Patek Philippe or Rolex watches,” he said, recalling one customer who made $200,000 on a Patek Philippe in 2022.

“There are a lot of people making $30,000-$50,000 in less than 12 months on a $40,000 investment.”

While Mr Fulton said the market had cooled considerably – about 30 to 40 per cent – since peaking in 2022, he believed it made now a good time to buy.

“That gives you potential for a long game investment, as long as you buy right,” he said.

So what is “buying right” when it comes to investing in watches?

Mark Hodges from Brisbane’s Harrington & Co., which specialises in buying, selling and trading vintage jewellery and watches, said genuine second-hand pieces over new offered the best opportunity for return on investment.

Watches are becoming a go-to product. Picture: John Gass

“I consider some brands an investment, Rolex, Patek (Philippe), but always on condition and definitely price and a little bit of luck,” he said.

“Not all watches will go up because, I guess, desires change, needs change, looks, fashion, it all changes and you’ve just got to be the one that’s holding the current fad almost.”

For example, Mr Hodges said while stainless steel sports watches have always been the most valuable, gold watches were now having their moment as people looked for something new and slightly less expensive.

Mr Fulton agreed and said two-tone watches were also gaining popularity, as well as more classical dress styles from the likes of Cartier and Piaget.

“They were mostly neglected over the past five to 10 years, in fact, they haven’t been that popular in the last 20 years, but we’ve seen a massive increase in the last 12 months I think because of all the hype of sports diver watches, people are looking for something different,” he said.

But if it’s long term gains you’re after, vintage watches from traditional brands like Patek Philippe and Rolex continue to offer the most stability, particularly highly rare varieties.

“They’ve made what they’ve made and there’s no more, so once they become desirable, the population of the world can expel the current price range and then they start moving up,” Mr Hodges said.

“If you bought now and you bought smart in something that wasn’t speculative but something solid like a very good Patek Philippe stainless steel watch or a vintage Rolex watch, you would see good gains in the five year mark.”

Having high profile celebrities endorse a watch could also lead to high prices, Mr Hodges said, citing how a Patek Philippe 2526 made in 1953 as the brand’s first automatic wrist watch jumped from between $50,000-$80,000 two years ago to double that when actor Brad Pitt was seen wearing it earlier this year.

Joseph Hodges of Harrington and Co.

One of the biggest factors affecting a watch’s price, however, is the documentation it comes with.

For those who have the original box and paperwork, a watch can fetch about $20,000 more depending on the brand.

Also crucial to its worth, is its servicing history.

Mr Fultom said watches should be serviced about every five years, but it’s crucial all parts remain original.

“If you’re looking at watches that are 40, 50 years old, if they’re all original and unpolished that watch will realise a higher return than if you had a watch with a serviced dial or hands or bezel, that would diminish the return on the watch,” he said.

“So it all comes down to the condition, rarity, whether it’s been polished or unpolished, whether it has the original box and papers.”

And to ensure you’re buying a quality timepiece, both experts said it was important to do your research first and buy from reputable dealers who offered money back guarantees that you were buying the authentic product. Mr Fulton revealed he had seen one too many dodgy purchases from online marketplaces where customers lost their money because the watch was either full of unoriginal parts or wasn’t as advertised.

But the men had one crucial tip for all potential investors.

“Buy something you love. There’s no point just buying for the dollar value alone,” said Mr Fulton.

A sentiment echoed by Mr Hodges.

“It’s definitely more than an investment and you’ve got to really love them so even if they don’t go up, you can enjoy wearing them,” he said.

“Wearing them can take away from the value, but it’s still going up and you’ve worn it and enjoyed. Look after it, enjoy it, otherwise it’s just stocks and shares.”