Money In The Bags

And we mean this literally. The next time someone teases you about your excessive handbag collection, tell them it holds investment potential.

- Mavis Teo

JUST THIS MAY a handbag went under the hammer at a Christie’s auction in Hong Kong for a record price of HK$2.94million (US$380,000) after just 15 minutes of intense bidding, surpassing the estimated US$258,000. The Matte White Himalaya Niltoicus Crocodile Diamond Birkin 30, designed by Jean-Paul Gaultier in 2014, was bought by an unidentified Asian buyer. Only two of these bags made of the skin of the Niloticus (albino) crocodile, embellished with 245 diamonds on its 18k gold hardware, are produced every year. It’s no ordinary handbag, and its rarity explains its price tag. The previous record was US$222,000 for a fuchsia gold and diamond Birkin that had belonged to Elizabeth Taylor.

These figures reflect the rising resale value of highly sought-after designer bags that are limited in production or have a very long waiting period. A study last year by Exane BNP Paribas, in collaboration with InstantLuxe.com, revealed that the most coveted second-hand Hermès bags could sell for up to 20 percent more than the brand-new ones. Meanwhile, local e-tailer Reebonz observed through its inaugural luxury resale index last year that an Hermès preowned Lindy could sell for 120 percent of its retail price. Reselling handbags is a serious business, according to the number of indices for this secondary market.