Above Rolex retail store display (Photo by John Greim/LightRocket via Getty Images)
Another well-known name in the watch world, Paxton Wong, says this fall in prices is no cause for alarm yet, but in fact good news for avid collectors like himself. Born in Singapore and based in Sydney, Wong has been collecting watches for over 40 years.
“This spells better availability of watches and hopefully an adjustment in pricing. For the passionate collector, not having to compete with grey market buyers is a good thing.” He adds that given the current economic downturn and instability in various parts of the world, the strong watch markets are still Hong Kong and Singapore.
Thomas Perazzi, head of watches, Asia, at auction house Phillips shares the sentiment that there is no cause for concern, and highlights that the market is “not softening at all and is as strong as before.” Having been in the watch auction business for over 15 years, Perazzi says he has observed such changes in the markets many times in the span of his career and expects repeats in future.
He notes two explanations for the current drop in prices: price correction and a change in interest from collectors.
“We were already expecting a price correction this year when the watches fetched really high prices in 2021,” he says, continuing,“Also, collectors who already own all the popular pieces are spending their money on other brands. Interest is moving towards the newer and independent brands.”
This is evidenced by the concurrent hike in prices of other watch brands like Bulgari, A. Lange & Sohne and Girard Perregaux—1, 3 and 5 per cent respectively.
“Watch collectors are also more educated now, especially because of the Covid-19 pandemic,” adds Perazzi. “It has allowed collectors to spend more time going deeper into their passion, expanding their interests so now they are collecting these other models or brands.”
Above Gérald Charles Genta's Jumbo Royal Oak for Audemars Piguet (Photo: Getty Images)
James Phang, a watch collector of about nine years and founder of whisky club Singapore Liquid Gold Club, echoes Perazzi's views: “I am a huge fan of independent brands, and I feel that many of them are still underrated or undervalued. This rise in prices would merely be market correction among the serious watch collectors and that is a positive thing in my view.
“I own a couple of watches from independent brands, and I buy them because I like the uniqueness of the dial or bezel or how time is being interpreted, as opposed to purely purchasing for the brand equity. It would be great to own timepieces in both classic and new categories, so there is always something appropriate to wear for every occasion. If in a couple of years the independent brand watches I own pick up in value, I'll be even happier as a watch collector too!”
As a result, Perazzi says it is an extremely exciting yet challenging time for auction houses like Phillips, as they have to adapt their watch catalogues to appeal to these changing interests.For watch buyers that are still unsure of how to navigate the market, Perazzi suggests speaking to one of Phillips’ watch specialists.
Clearly, most watch aficionados are unconcerned by this price decline on the secondary market. In fact, they are optimistic about what this spells for the future.
“Because of education and transparency, the future of watches is very positive,” says Cheong. “We have not seen the high prices yet—not by one-tenth! For any collector of almost any significant value items, we need to look backwards and forwards; we need to let go of sentiment and yet remain passionate. And I have consistently put my money where my words are.”
