More giving up luxury timepieces

A banker, who wanted to be known only as John, trudged into a second-hand watch shop two days ago carrying a prized $4,000 Gerald Genta timepiece.

There, the young man, his year-end bonus under siege from Singapore's economic slowdown, sold the watch for a song.

It was the third time in two months that John, who is in his 30s, had been forced to part with a timepiece from his five-watch collection, which had cost him more than $20,000.

'In these times, you start getting rid of things in surplus and keep only those things you really need,' he said.

John is among a growing number of high-fliers who are unloading their luxury watches for cash as Singapore's economy enters its first recession in six years.

"In these times, you start getting rid of things in surplus and keep only those things you really need."
Banker John, who recently sold his $4,000 Gerald Genta watch. It is the third watch he has given up from his $20,000 five-watch collection.Second-hand watch shops have been flooded with brands ranging from Rolex to the ultra-high-end Patek Philippe as bankers, stockbrokers and other battered business heavyweights face stark financial choices.

Economists say this is one of the first signs that Singapore's upper crust is feeling the pinch of the economic downturn, which has already forced lower-income families to tighten their belts.

'It is symptomatic of white-collar stress and definitely means things are more widespread than before,' said Barclays Capital economist Leong Wai Ho. 'People are getting rid of luxuries they don't need.'

A Straits Times check with 10 second-hand watch stores found that half have seen an increase in people looking to hawk their luxury timepieces in the past four months. In some stores, the number of sellers has jumped 30 per cent.

'People are selling the expensive watches they bought during better times,' said Mr Jonathan Tee, 34, who owns Passions at Funan DigitaLife Mall.

Mr Tee has seen his stock rise 20 per cent in the past two months. He also said 50 per cent more customers are choosing to sell their watches directly to him instead of by consignment. The latter arrangement sees Mr Tee paying the sellers only after the timepieces have been snapped up.

'This means they want fast cash and care less that they will get lower returns,' he said.

While supply has risen, second-hand watch dealers are facing plummeting demand as Singaporeans rein in spending.

Owners of all 10 specialist stores that The Straits Times spoke to reported business dropping during the last four months, sometimes by up to 50 per cent.

'Now, buying second-hand watches from people is easy, but selling is tough. I have so many surplus watches,' said Ms Lucy Ong, owner of Branded Concept at Far East Plaza.

Many expect the situation will only get worse as forecasts warn of a deep global recession.

"Now, buying second-hand watches from people is easy, but selling is tough. I have so many surplus watches."
Ms Lucy Ong, owner of Branded Concept at Far East Plaza
The problems mark a precipitous drop for an industry that has blossomed in the past two decades. Industry players say there were just three makeshift second-hand luxury watch shops in the 1980s; today there are over 20. They deal in everything from a $480 gold-plated Bulova to a $95,000 Audemars Piguet Tourbillon.

Most buyers and sellers are white-collar workers from the financial sector - the group that has been hit the hardest by plunging stock markets and the contraction of credit markets.

Businessman Peter Poh, who has three watches worth $33,000, is one of those affected. The 43-year-old, who distributes IT products, is facing the prospect of having to sell his collection.

'Business has slowed by about 15 per cent in the last few months. Watches are luxury items. I can part with them,' he said stoically.