The prices of Rolex and Patek Philippe watches have experienced a decline in recent months, largely influenced by the Subdial Watch Index nearing a two-year low. Over the past 12 months, the index, which monitors the prices of 50 widely traded luxury watches on the secondary market, has recorded a decrease of approximately 19%.
Among the models on the index, the Nautilus, Royal Oak, and Daytona have been the poorest performers, with their prices plummeting by more than 20%. These particular models, highly sought after worldwide, had previously witnessed a significant surge in prices due to factors such as increased investor demand and limited availability of new watches from the brands.
However, the recent economic downturn and the rise in interest rates have resulted in a decline in luxury goods demand, consequently impacting watch prices. Moreover, some investors are choosing to sell their watches to generate cash, further contributing to the downward pressure on prices.
The duration of this current trend remains uncertain. However, it is likely that prices of Rolex and Patek Philippe watches will continue to face downward pressure in the near future. Both brands have expressed their commitment to producing limited quantities of watches. This is expected to maintain high prices in the long run. Nevertheless, the recent market downturn suggests that prices may not experience the same steep incline as observed in previous years.
