Going, going, gone!
Hong Kong is now ranked among the world's top markets with wealthy collectors from the region splashing out millions for prestigious brands
In little more than a decade, Hong Kong has vaulted almost to the top of the international watch auction market. It now ranks among Geneva and New York as one of the top three markets, according to auction houses Christie's and Sotheby's.
'With the way business and the economy in Asia has developed over the past decade, one of the first things that people with a certain amount of wealth look to acquire is a watch that shows how successful they are and what their social status is,' said Tim Bourne, international co-head of Christie's watch department.
At this year's autumn sale in Hong Kong, the top seller at Sotheby's was the Omega Beijing 2008, a unique set of 35 limited edition watches each numbered '8' and sold for HK$9.62million. Omega donated all proceeds from the sale to the Chinese Athletes Educational Foundation, which is dedicated to not only supporting young athletes, but to also helping youngsters affected by the Sichuan earthquake. Sotheby's also donated part of its proceeds to the foundation.
A Patek Philippe, pink-gold perpetual calendar, split-seconds chronograph wristwatch, came in second at the same Sotheby's auction when it sold for HK$1.82million. Sotheby's auction raised more than HK$47.5 million, making it the highest total achieved by Sotheby's Hong Kong in a various-owner sale of watches.
For serious watch collectors, Swiss watchmaker Patek Philippe, renowned for its exquisite craftsmanship and extraordinary mechanical complications, is the most coveted brand.
'It's always been the best brand. Since 1839, the company has been making the highest grade watches,' said Aaron Rich, vice-president and department head for watches for Sotheby's New York.
Other brands on collectors' wish lists include A. Lange & Sohne, Rolex, Breguet, Vacheron Constantin and Audemars Piguet. Up-and-coming collectable brands include Franck Muller, F.P. Journe, Richard Mille and Vianney Halter.
In terms of watch preferences, buyers in Hong Kong tend to favour more contemporary watches made in the past 20 years, while their counterparts in the United States and Europe are attracted to more vintage pieces.
'In Geneva and New York, they love watches with a great provenance and history,' Mr Bourne said. 'But in Hong Kong, they don't like to buy watches that have been worn by others, especially someone who is no longer living.'
Twenty-five per cent of the buyers at Christie's watch auctions in Hong Kong are from the city, with the remainder from Indonesia, Thailand, Taiwan, Japan, and increasingly from the mainland.
Jewellery watches, studded with diamonds and other gems, also tend to sell better in Asia.
Many of the several hundred watches that go under the hammer at Sotheby's and Christie's at each sale have made repeat appearances on the auction block. 'More modern pieces can come back on the market within two to three years,' Mr Bourne said. 'Some of the more vintage pieces are more recognisable, so it wouldn't be prudent to bring them back on the market sooner than seven or eight years. You want to make sure they are fresh to the market.'
When sourcing watches for auctions, both Christie's and Sotheby's maintain regular contact with collectors around the world, some of whom own between 200 and 300 collectable watches.
'Some people buy watches because they love the watch and appreciate every aspect of it, but obviously we get a lot of people who are focused more on the investment potential,' Mr Bourne said.
Watches have proved their worth as an investment in recent years, with some watches appreciating 100 per cent or more in price over the past five years. 'We've seen some watches that sold for HK$1million four or five years ago, and are now selling for HK$3million,' Mr Bourne said.
Mr Rich sees his role as guiding and advising clients based on the investment climate for watches. 'What people are getting is the expertise of the auction house. Our clients can handle the watches. We can tell people if a watch would make an interesting addition to their collection,' he said.
The vast majority of collectors are men, but women represent a growing force in the auction market. 'It's been a man's hobby, but women sometimes bid on men's and women's watches. Some women like to wear mid-sized men's watches,' Mr Rich said, adding that women tended to buy more for aesthetic reasons.
Watches from the mid-20th century (1940s to the 1970s), considered the 'Golden Age' of watchmaking, are the most sellable at auctions. This was the period when elite watchmakers began adding various complications to watches, such as perpetual calendars, moon phases, chronograph functions and minute repeaters.
Both Christie's and Sotheby's are looking forward to continued growth in watch sales in Hong Kong.
'It's always thrilling when auctions become stronger and stronger. I see the market continuing to grow, not only specifically in Asia, but around the world,' Mr Rich said.
Mr Bourne added: 'There seems to be no let-up in terms of new watchmakers coming on the market, and new engineering [developments].'
