That Chanel 2.55 handbag you purchased (possibly with guilt feelings) in 2010 just increased in value by almost 50 percent. From just under $5,555 to $8,154.
If you compare that gain to a real estate investment, the 16% increase in Brisbane this year, for instance, seems pale.
Of course, there are pros and cons of investing in a property over splurging on a luxury fashion item, but adding handbags can be a good way to diversify your portfolio. Plus, you can’t wear your house key to a party, right?
In terms of investment potential, luxury handbags now outperform rare liquor, vintage cars according to Art Market Research (AMR).
Some bags, from the likes of Louis Vuitton, Chanel, and Hermès have significantly increased in value to an average of 83% in the last 10 years.
A bag is easier to sell than a house
Selling a pre-loved luxury bag is faster than putting your house in the market. This is a relief if you ever need quick cash. Many pawnshops are also accepting handbags.
But some people are actually making a living in the secondary bag market.
According to Rachel Reavley, board of director of Hardlyeverwornit.com, a London-based resale website, at least 15% of their registered users are part-time or full-time resellers.
The secondary bag market is now one of the busiest sections of the luxury market. In 2019, more than 3,500 designer bags were sold at auction houses such as Christie’s, raking in a whopping $44.14 million.
The record-breaking sale was made in November 2021 when a diamond pavé, white crocodile Hermès Birkin (229 diamond sprinkles in all, totalling 9.3 carats) was sold for around $HK4 million (A$939,665). The bag wasn’t even vintage or worn by anyone famous. But it raked in a high price tag because of rarity.
Top 6 handbags with the best resale value
The potential resale value of a bag is not only based on whether it comes from a famous fashion house. According to AMR’s Luxury Handbag Report, the bag’s condition will determine its selling price in the resale market.
So if you are planning to invest in designer handbags and you want to sell them later, you need to make sure that you take care of them.
Below are six bags with high potential to rake in higher resell value as curated by herworld.com
1. Hermès Long Strap Evelyne Bag Epsom TPM
First introduced in 1978, the Evelyne Bag by Hermès was originally designed to transport equestrian goods. But it was reintroduced in the mid-2002 where it was welcomed as an every day staple for many wardrobes. People love its compact and convenient design. Estimated retail price: $2,414
2. Louis Vuitton OnTheGo Tote Limited Edition Reverse Monogram Giant MM
This versatile Louis Vuitton bag was released in 2020 and has became famous because of its size, perfect for those “OnTheGo”. You are lucky if you already have this bag. It is limited and difficult to find in retail stores, so the demand is high and has an excellent resell value. Estimated retail price: $5,115
3. Chanel Classic Single Flap Bag Quilted Caviar Mini
Since its conception in the 1980s, this classic Chanel singe flab bag has seen many variations and remains a well-loved piece. Its resale value increased by 53% in retail according to Rebag. Estimated retail price: $1,462
4. Bottega Veneta BV Jodie Mini Bag
The Jodie Mini Bag was introduced by Daniel Lee, the current Creative Director of Bottega. It can hold on for years thanks to its seamless structure and woven leather design. Rebag estimates its value retention at 95%. Estimated retail price: $2,339
5. Dior Book Tote
Rhianna was spotted carrying this carryall designed by Maria Grazia Chiuri in 2018. Its resale value is 98 per cent, which makes it one of the most sought after bag in the market. Estimated retail price: $4,300
6. Saint Laurent Loulou Shoulder Bag
Saint Laurent bags are one of the top luxury fashion labels with high resale value according to CLAIRE report. This Loulou bag is a great investment piece and it’s perfect for a date night. Estimated retail price: $2,673