Luxury goods have been growing in popularity as alternative investments.
As Singapore continues to climb the ladder of affluence and create wealth, the ultra-high net worth individuals (UHNWIs) are looking further into luxury goods, mainly watches. Around 59 percent of Singapore UNHW choose luxury watches as a top investment of passion to be sought after in 2023.
Throughout the last 10 years, the price changes of luxury watches grew by an accumulative of 147 percent, according to the Knight Frank Luxury Investment Index (KFLII). It grew 18 percent from 2022 to 2023.
Passion Has Evolved
Following luxury watches in the second rank, wine and rare whiskey follow with 45 percent of responses. Wine returned a cumulative 162 percent, while rare whisky increased 373 percent in ten years. In the Asia-Pacific region, around 48 percent of UHNWIs are interested in purchasing watches. Meanwhile, wine counted for 45 percent and jewelry for 38 percent.
«Passion for these luxury goods... has now also evolved into investment-grade assets. It speaks of a very innate human desire to savor and enjoy what is rare and precious,» said Nicholas Keong, head of the private office, Singapore of Knight Frank.
