Singapore’s ultra-rich likely to buy watches in 2023, report finds

Ultra-high net worth individuals (UHNWIs) in Singapore continue to indulge in investments of passion, a survey from the latest Knight Frank Luxury Investment Index (KFLII) has found.  

The real estate consultancy released its annual Wealth Report on Mar 1. As part of the report, the KFLII tracks the value of 10 luxury collectibles, from watches and wine to classic cars and art.  

In Singapore, a majority of 59 per cent of respondents ranked watches as the top investment of passion to be sought after in 2023, Knight Frank said in a press release. This was followed by wine and rare whisky, both with 45 per cent of respondents.

Among these luxury collectibles, Singapore’s UHNWIs are willing to invest the most value for wine, followed by watches and coins.

Nicholas Keong, Head, Private Office, Knight Frank Singapore, said: “Passion for these luxury goods which were originally collected for pure personal enjoyment has now also evolved into investment-grade assets. It speaks of a very innate human desire to savour and enjoy what is rare and precious.”

In Asia Pacific, UHNWIs are also most interested in purchasing watches (48 per cent). This was followed by wine (45 per cent) and jewellery (38 per cent).

“Luxury watches and jewellery are seen as a status symbol around the world, but especially pertinent in Asia, where many countries are still underdeveloped and perceive ownership of such assets to be unattainable,” said Christine Li, head of research at Knight Frank Asia Pacific. “Moreover, these assets may also serve as an inheritance for Asia-Pacific UHNWIs, potentially appreciating in value. On the other hand, wine symbolises the idea of sophistication and refinement since it has a myriad of health benefits and is considered a healthier alcohol option by many individuals. Given the hefty price tag for quality wines, some might even consider it to be a status symbol in Asia Pacific as well.”

When it comes to value, art, however, leads the overall KFLII as best performing luxury investment asset, with prices rising by 29 per cent in 2022, or 91 per cent over a 10-year period. Cars came in second place, rising by 25 per cent in 2022, or 185 per cent over the last 10 years.

Watches took third place, rising by 18 per cent in 2022, or 147 per cent over 10 years. The top selling watch of 2022 was a Gobbi Milano-signed Patek Philippe Ref 2499, which sold for US$7.7 million at a Sotheby’s auction.

Handbags came in fourth, rising by 15 per cent in 2022, or 74 per cent over 10 years. Wine ranked fifth, returning a cumulative 162 per cent, or 10 per cent in 2022.

Rare whisky ranked at the bottom of the index. Although prices increased by 373 per cent in 10 years, its value only grew by a moderate 3 per cent in 2022.