Forget gold and property, the latest investment craze sweeping South Africa (SA) comes with a little more sparkle and a lot more swagger. From Rolex watches to Hermès handbags, more South Africans are turning to luxury goods as high-value assets amid an unsteady Johannesburg Stock Exchange (JSE).
A new State of the Luxury Market in Africa report reveals that some pre-owned luxury pieces are not only holding their value but outperforming traditional investments, with certain Rolex models rising more than 100% in resale value.
Michael Zahariev, co-founder of Luxity, SA’s biggest pre-owned luxury marketplace, says the trend has taken off as people look for ways to make their money work smarter, and with style.
“We’ve seen more clients buying Rolexes for their investment potential,” Zahariev told The Upside. “People are realising that luxury isn’t just about showing off, it can be strategic.”
But what’s driving the price boom? Scarcity. It turns out you can’t simply stroll into a store and buy a new Rolex. Waiting lists can run for months, even years, and that’s made pre-owned models incredibly sought-after. Some are selling for up to 26% more second-hand than brand-new pieces.
It’s not just watches turning heads. The ever-iconic Chanel flap bag and Hermès Birkin are also proving their worth. Chanel has been hiking the price of its new handbags every year, which means anyone holding onto an older one is sitting on a small fortune.
“Heritage pieces, items that have been around for decades, tend to perform best,” Zahariev explained. “In SA, where brands like Chanel and Hermès don’t have boutiques, pre-owned bags are even more valuable because of the limited access.”
What’s perhaps most exciting is how the pre-owned market is opening up the world of luxury to younger buyers. With online shopping, payment plans, and instalment options, investing in luxury no longer feels out of reach.
“It’s not just about spending more,” said Zahariev. “It’s about what you can get back later. A quality designer coat might cost four times more than fast fashion, but you can resell it for nearly the same price, while that fast-fashion jacket won’t fetch a cent.”
In a world where the economy feels unpredictable, it seems South Africans are proving that looking good and investing smartly can go hand in hand.
Because sometimes, the best return on investment comes in a little black box.
–ChannelAfrica–
