First Quarterly Gain in Three Years for Pre-Owned Watch Market with Rolex and Patek Leading the Charge
Being a testament to the pulse of the watch industry, data compiled by Morgan Stanley and WatchCharts indicates a positive shift in market sentiment. The pre-owned watch sector experienced its first quarter of growth after thirteen sequential quarters of decline. Thanks to U.S. tariffs adding fuel to the retail price flame, pre-owned Patek Philippe and Rolex prices have surged.
Welcome news for a sector that has grappled with tariffs, slowing demand, and escalating costs, the third quarter witnessed a rise of 1.5% in prices compared to the preceding quarter. However, the data also paints a more complex image, seemingly drawing a line between top-tier brands and the remaining market.
On further analysis, it’s clear that the revival is principally driven by enduring powerhouses Rolex and Patek Philippe. They account for more than two-thirds of the weight in the WatchCharts Overall Market price index, with Patek Philippe’s secondary prices climbing an impressive 3.9% quarter-over-quarter, and Rolex also showing solid gains of 1.3%.
Despite this, value retention is showing a different narrative. Owing to primary model price increases at retail, there has been a reduction in the value retained as according to secondary market prices. Rolex continues to retain its position as the only brand that trades substantially above retail, with value retention of +15.7%. In contrast, Patek Philippe’s value retention has declined to -4.7% due to a hefty 15% U.S. retail price increase.
The performance of significant industry watch groups is also worth noting. Rolex Group led the Swiss groups with a 1.3% Quarter on Quarter gain, buoyed by both Rolex (+1.3%) and Tudor (+1.4%). Other groups have seen a mixture of gains and losses across their brands this quarter, indicating that the market recovery seems to be preferentially boosting particular high-end marques. As the year draws to a close, all eyes will be on whether this uptick in the pre-owned market signals a lasting trend.