Chrono24, a global online marketplace for trading watches, says that reports of collapsing prices on the secondary market are being overblown.
As WATCHPRO has recently revealed, hot watches from the likes of Rolex, Patek Philippe and Rolex were already trading at many multiples over retail prices at the start of the year.
The rarest and most sought after, in particular models being discontinued such as the Patek Philippe Nautilus 5711/1A and Audemars Piguet Royal Oak Jumbo, continued to increase in price before falling since the end of March.
A slew of the most in-demand Oyster Perpetual watches from Rolex were also discontinued at the end of the first quarter. They had rocketed in value until that point, but have fallen back sharply since, in some cases loosing half their value from peak to the end of June.
Chrono24 concedes that prices have been softening in some areas as traders have put more of the hot watches up for sale.
“We are currently experiencing a consolidation of the market — there is more supply, and thus prices are falling. The supply of unicorn or trophy watches, which was very limited for a long time, such as the Patek Philippe Nautilus 5711A or the Rolex Daytona, is now much larger, and thus the individual watches are becoming cheaper,” describes Chrono24 co-CEO Tim Stracke.
There have been reports that dealers have all-but stopped buying and selling between themselves — a significant volume of deals on the secondary market — but Mr Stracke says transaction volumes have risen.
“We have seen a significant increase in trading volume of more than 50% year-on-year in the first half of the year on Chrono24,” he reveals.
The secondary market was overheating in the first quarter of this year, but has cooled since.
Although prices have declined in the second quarter, they remain well above the level of recent years and considerably above authorised dealer prices for the well-known list of unicorn watches.
Chrono24 data shows the Patek Philippe Nautilus 5711A ($35,000 at an AD) was still selling for up to $240,000 in the first quarter before dropping 21% to $190,000; still more than five times its list price.
Audemars Piguet’s Royal Oak Jumbo peaked in March at around $158,000 before falling back 22% to $123,000 today.
While dealers are banking profits by selling off more unicorn watches, the market for alternatives to the usual AP, Patek and Rolex watches is creating buying opportunities.
“Based on our data, we see significant price jumps upwards for watches like the Girard-Perregaux Laureato. Demand for virtually all models from the Omega Speedmaster collection has risen significantly, as have sales prices, due in part to the enormous publicity success of the Moonswatch. Watches from Cartier and Breitling have also risen significantly in price and demand,” says Mr Stracke of Chrono24.
Chrono24 also highlights the strength of independent artisan watchmakers like H. Moser & Cie. and Czapek & Cie., which have seen prices soaring at auctions and on the secondary market.
Good afternoon, I bought a Rolex Daytona 6262 in 1975, I still have all the original paperwork, box and receipt. Can you please let me know if the value of these watches has increased or decreased recently. Regards J Richards