The downturn in the secondhand luxury watch market continues, marking the 11th consecutive quarter of declining prices, according to a new report from WatchCharts and Morgan Stanley. In the final quarter of 2024, prices dropped by another 1.5%, cementing a prolonged slump since the market’s peak in May 2022.
The price decline has affected brands across the board, with publicly traded companies like Richemont, LVMH, and Swatch seeing their used watch sales underperform compared to the broader market. Richemont brands were hit the hardest, registering a 2.4% drop in resale values. The company also reported an 8% plunge in watch division sales for Q4, while its jewelry division experienced a robust 14% increase.
The “Big Three” watch brands—Rolex, Patek Philippe, and Audemars Piguet—also faced a downturn in secondhand sales, though their decline in 2024 was less severe than in 2023. These three brands accounted for 64% of the pre-owned market last year, a steady decline from 66% in 2023 and 67% in 2022.
Rolex’s Certified Pre-Owned (CPO) program, however, expanded significantly. At the start of 2024, only 25 retailers participated in the program; by year’s end, that number had soared to 107. Despite this, only 15% of Rolex's global retail network currently offers CPO models, mostly dominated by major chains like Bucherer, Tourneau, Watches of Switzerland, and the 1916 Company. Industry insiders anticipate that Rolex will eventually introduce its CPO initiative into new markets, including China.
With the market showing no signs of rebounding, collectors and investors are left wondering: is now the time to buy, or will prices continue their downward spiral?