_Art leads the Knight Frank Wealth Report 2023 Luxury Investment Index
Singapore - Collectable art led Knight Frank’s Luxury Investment Index (KLII) in 2022, with prices rising by 29% according to this year’s edition of The Wealth Report. The KFLII which tracks the value of 10 investments of passion, rose by a healthy 16% during the year, comfortably beating inflation and outperforming the majority of mainstream investment classes, including equities and even gold. Within the index, which is weighted to reflect the “collectability” of each of its constituents, half of the assets saw double-digit growth in 2022. Classic cars revved up the index, coming in second place to art with prices rising 25% - the strongest finish for nine years. Watches took third place on the KFLII podium in 2022, up 18%.
Victoria Garrett, Head of Residential, Knight Frank Asia-Pacific, shares: “The results of our index and some of the staggering sums paid for investments of passion over the past 12 months highlight just how important their collections are to UHNWIs and how resilient many of these asset classes are to economic and geo-political events. Gen Z and Millennial wealth is also having a profound impact with new collectable markets emerging all the time. The Knight Frank wine index recorded growth of 10% - respectable, but down on 2021’s 16% rise. Whisky, although still KFLII’s 10-year leader by a good margin (+373%), was one of 2022’s weakest performers with growth of just 3%. The watch market at the top three auction houses grew 33% in 2022 to a total of £475 million, this included 40 watches that sold for over £1 million, 12 more than the previous year.”
Christine Li, Head of Research at Knight Frank Asia-Pacific, adds: “Compared to global ultra-high-net-worth-individuals (UHNWIs) (46%), Asia-Pacific UHNWIs are more interested in purchasing watches (48%), wine (45% for Asia-Pacific and 39% for global) and jewellery (38% for Asia-Pacific and 33% for global). 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. Moreover, these assets may also serve as an inheritance for Asia-Pacific UHNWIs, potentially appreciating in value. On the other hand, wine symbolizes 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.”
The Knight Frank Luxury Investment Index Q4 2022*
| Luxury Investment assets | 12-month | 10-year | Top-selling items |
| Art | 29% | 91% | Andy Warhol Shot Sage Blue Marilyn, 1964 - US$195m, Christie’s |
| Cars | 25% | 185% | Mercedes-Benz 300 SLR Uhlenhaut Coupé – US$143m, Sotheby’s |
| Watches | 18% | 147% | Gobbi Milano-signed Patek Philippe Ref.2499 – US$7.7m, Sotheby’s |
| KFLII | 16% | 137% | - |
| Handbags | 15% | 74% | Hermès Himalaya Crocodile Kelly – US$353K, Sotheby’s |
| Wine | 10% | 162% | Methuselah of 2007 Domaine de la Romanée-Conti – US$361K, Sotheby’s |
| Coins | 8% | 59% | 1821 US$5 denomination gold piece “Half Eagle” – US$4.6m, Hermitage Auctions |
| Jewellery | 6% | 44% | The Williamson Pink Star, a 11.5-carat fancy vivid pink diamond ring - US$57.7m, Sotheby’s |
| Furniture | 4% | 34% | Ming Dynasty chair – US$15.9m, Sotheby’s |
| Coloured diamonds | 4% | 16% | The De Beers Blue Diamond, 15.1 carat fancy vivid blue – US$57.5m, Sotheby’s |
| Rare Whisky | 3% | 373% | The Macallan The Reach, 81 year old single malt – US$300K, Sotheby’s |
*Sources: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Color Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners. Notes: All data to Q4 2022 KFLII is a weighted average of individual asset performance
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