The rapid growth of the luxury resale market that created a buying boom for luxury items is showing signs of stagnating due to the recent decline in asset prices.

According to the resale platform Kream, Chanel medium classic flap bags were selling at prices ranging from 12-13 million won (US$8375-$9070) until January, when resale prices had at least a 10 per cent premium over the official sales price.

Starting from February, however, resale prices fell to the 11 million won level, lower than the official sales price, and remained at a similar level up to now.

The Rolex Submariner Non Date, with an official sales price of 11.42 million won, was selling for around 17 million won through Kream in January.

Thereafter, however, the resale price took a tumble, falling to the 15-16 million won level.

Since Rolex thoroughly limits its supply volume unlike other luxury brands, resale prices for the company’s products typically decline at a slower pace than Chanel’s.

Market analysts said that a new consumer group that joined the luxury market to take advantage of the hike in asset prices during the initial stages of the Covid-19 pandemic is reducing spending or getting out of the market entirely.