Despite high inflation and other economic pressures, the luxury watch market in South Africa is showing strong growth.
With some caveats, the right watch brands are strong investments. A luxury watch is also a personal asset, which can be sold or used to secure a loan at a chosen time.
Value of SA’s luxury watch market
The luxury watch market in South Africa is small in comparison to those in countries like China and the United States. Nonetheless, it is showing steady, significant growth.
Most recently, revenue for the market was pegged at a little over US$116 million.
According to the latest market forecast, the segment is expected to grow annually by 3.44% over the next five to six years.
Increasing value of luxury watches
The value of certain watch models climbed in 2022 and looks set to remain high throughout 2023.
Drivers of the rising prices included:
- an increase in demand for luxury watches
- pandemic-related production constraints, which reduced supply
- manipulation of the market by key luxury watch manufacturers and retailers.
Men’s vs. women’s luxury watches
Currently it’s only men’s luxury watches that have real investment value.
Men’s watches by prestigious brands like Rolex, Audemars Piguet and Patek Philippe are proven investment assets that tend to gain value over time.
By contrast, ladies’ watches tend to be viewed as fashion accessories rather than investments. They depreciate significantly in value once purchased, notwithstanding make or model.
Some of the highest-priced watches sold in South Africa
Some of the highest priced watches sold in South Africa include the:
- Audemars Piguet Royal Oak Perpetual Calendar – R6,999,900
- Lange & Söhne A Owl Series 950 – R5,490,00
- Patek Philippe Nautilus White Gold – R4,399,900
- Audemars Piguet Royal Oak Perpetual Calendar – R3,999,900
- Audemars Piguet Royal Oak – R2,749,900
- Patek Philippe Nautilus – R2,499,900
- Patek Philippe Automatic Blue Dial – R2,099,900
- Ulysse Nardin Freak Diavolo Tourbillon – R1,999,900
- Audemars Piguet Royal Oak Chronograph – R1,975,900
- Rolex Sky-Dweller – R739,900.
Rapid growth in the pre-owned luxury watch market
In South Africa and worldwide, trade in second-hand luxury accessories, including handbags and luxury watches, is booming.
A surge in the number of online platforms specialising in pre-owned luxury goods is behind the explosion in sales.
These platforms are a relatively new player in the industry.
According to the latest report by Luxity, an online re-seller of pre-owned luxury goods in South Africa, the highest return for a watch brand is Rolex, returning 87,5% on average when comparing resale price to retail.
Rolex is expected to remain unrivalled for years to come.
An alternative to selling a luxury watch in South Africa
Rather than selling a luxury watch – which can take time and is subject to risks – use it to secure a short-term loan. This is a quick and convenient way to raise capital.
It also enables the retention of a valuable investment asset, which can be handed down to the next generation or sold at a later time.
Lamna offers short-term loans against luxury watches and other personal assets of value. We’re an established financial services provider with physical branches across South Africa. For more information, WhatsApp us on 071 108 4797, call 086 111 2866 or simply complete and submit our online application form.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.