Wristy business? Luxury watches turn back time

Report reveals demand for rare timepieces has weakened.

Sales of luxury watches suffered a “severe downturn” last year as well-heeled buyers turned cautious amid geopolitical concerns and fading enthusiasm for pricey timepieces, a new report has found.

Total watch sales at the top auction houses fell 13% to 610 million Swiss francs ($696 million) in 2023 from record levels hit in 2022, according to the Hammertrack report released by industry consultant the Mercury Project.

Demand soared during and in the aftermath of the pandemic as cash-flush buyers, further encouraged by low borrowing costs, pushed prices of rare watches from brands including Rolex and Patek Philippe to unprecedented levels. The boom has faded, however, amid wars in Ukraine and the Middle East, while global economic growth has turned shaky.

The 2023 tally, which tracks sales from auction houses including Antiquorum, Bonhams, Christie’s, Phillips, Poly Auction and Sotheby’s, shows average lot prices fell 3% to 48,600 francs last year, the Mercury Project said.

Far fewer watches sold at a hammer price above one million francs in 2023, falling 41% to 58, down from 98 in 2022. However, the total value of watches sold above one million francs at auction rose by 2% to 122.6 million francs.

Patek Philippe dominated the list of the highest priced watches, accounting for three out of five of the most expensive sold, the report showed.