2022 was a record-breaking year for the primary Swiss watch industry with global exports rising by 11.4% to CHF 24.8 billion.
It was also the best ever year for the auction sector, with the total value of sales increasing by 11% to CHF 701.6 million for Antiquorum, Bonhams, Christie’s, Sotheby’s, Phillips and Poly Auction.
But the annual figures for the watch auction market conceal a tale of two halves, with autumn the value of sales in the autumn events slumping by 29% compared to the same period in 2021.
Top end collectors appear to have been influenced by falling prices on the wider secondary market where prices rocketed in the first quarter of last year for the most traded watches, but then fell by more than one third over the next nine months.
The Mercury Project, which tracks auction results for the major houses, reports that sales at the spring events in Q2 rose by 56%, but year on year growth went into reverse in Q4.
Thierry Huron, who compiles The Mercury Project report, suggests a number of potential reasons for the decline in auction sales in the fourth quarter.
First, it was tough to beat the results of the autumn sales last year, when major auction houses, Phillips in particular, delivered exceptional performance at sales including the Geneva Watch Auction: XIV, which set a watch auction world record of CHF 68.3 million.
Secondly, fewer important watches went across the block because of cooling market conditions. So, while the average price per lot fell by 8% in Q4, the total number of watches sold dropped by 23%.
In addition, sales from online-only auctions fell by 46% in the final months of the year, and by 21% for the whole of 2022. This mirrors a wider trend in the primary market, with brick and mortar sales holding up far better than ecommerce as the year progressed.
Patek Philippe maintained its reputation as king of the watch auction brands, with 656 lots selling for six or seven figures. Rolex was in second place with 268 watches hammering for over CHF 100,000 and AP in third with 229.
There were 98 watches sold for over CHF 1 million, and it took a price of almost CHF 3 million to make it into the top ten most expensive watches of the year.
That top 10 included five watches made by Patek Philippe, two from Richard Mille, one George Daniels, one F.P. Journe and a single Rolex.
