‘It’s an investment,’ I say to my accountant boyfriend of my latest purchase: a CHANEL flap bag. As if on cue, he smiles politely and nods, but I can see the accountant inner-workings of his brain debating the accuracy of my claim. However, I am pleased to say this wasn’t a lie or a simple justification of an of-the-moment purchase. After all, CHANEL is one of the many designer brands appreciating in value that are worth the splurge. Here, we take you through what designer purchase appreciation is, which key pieces are known for increasing in value and what you can expect to see on the rise in 2024.

What designer brands appreciate in value?

Many designer brands are known for producing pieces which appreciate in value, however as a rule of thumb, the following are most known for holding their value over time:

• Louis Vuitton
• Chanel
• Prada
• Hermès
• Cartier
• Tiffany & Co.
• Dior
• adidas
• Rolex
• Burberry
• Ralph Lauren
• Alaïa

What pieces appreciate in value?

Of the above brands, certain key pieces appreciate in value greater than others, including:

CHANEL: Classic flap bag

The simplistic, much coveted Chanel flap bag was first launched in 1955, making it one of the oldest luxury handbags on the market. Originally priced at $220USD, they now go for upwards of $8,000USD as of 2021. Between 2010 and 2015 alone, the value of the bag increased by more than 71 per cent, making it one of the most prominent designer brands appreciating in value.

Louis Vuitton: Neverfull Tote

They are the go-to, ‘forever’ tote bag for many, a timeless iteration that fits daily essentials for a busy lifestyle. The Louis Vuitton Neverfull increases in value by an average of seven per cent per year, with the style typically retaining 85 per cent of its resale value.

Cartier: Love Bracelet

The ultimate symbol of love (of oneself or someone special), the love bangle is perhaps the most iconic piece designed by Cartier. The bracelet was initially valued in 1969 at $250USD. They now retail for more than $7,000AUD and can even fetch more than $80,000AUD depending on the material, gemstones and prevalence of design.

Hermès: Birkin

The holy grail of designer investing is the Birkin. Birkin’s are an enigma. They are a life’s work to some and something to aspire to for others. Over a 35-year period, the Birkin bag value increased by 500 per cent. This is in part due to its scarcity and limited run. Currently, Birkin’s vary when purchased brand new from $40,000AUD and Hermès has been a secure designer brand appreciating in value for decades.

Burberry: Trench

An iconic symbol of the Burberry brand, the classic wardrobe staple retails as new from more than $2,500AUD. Costs vary depending on length, material and silhouette. Pre-loved trench coats are known to sell for more than $2,500AUD and are known to increase in value, even with regular use.

Elsa Peretti for Tiffany & Co: Unique Silverware

Elsa Peretti accessories continue to be catnip on the resale and investment market. The first quarter of the year saw a 42% increase in searches, with the momentum holding strong in the first month of 2024. Her organic and modern designs, particularly the bone cuff have fared very well with the likes of Jennifer Lawrence.

How do I protect my investment pieces?

Pieces purchased with the intention of being an investment – or even a piece to be treasured for life – need to be kept in exceptional condition, especially in the event that they may end up being resold. The more wear and tear on an item, the less it will appreciate in value for obvious reasons. However, just because you may choose to wear and enjoy the item prior to selling, it doesn’t mean it will lose all value.

Handbags and jewellery are primary investments to shoot for from designer brands, as maintenance is high-reward, low-risk. You can ensure an almost pristine condition if you are weary of wear and tear. However, shoes can be trickier as, once worn, the sole has immediate signs of use. This doesn’t mean some shoes can’t sell for a high price, however it will be harder to see a return on investment (ROI) with shoes.

What pieces are expected to appreciate in value in 2024?

The list above is a non-exhaustive run down on the designer brands appreciating in value, however, as is commonplace for fashion, there are trends cycling through upsetting the status quo. Contemporary brands like The Row and New Balance are already seeing hefty ROI, especially in the luxury resale market. Brands like Hermes and CHANEL will continue to upsell with low chances of dwindling, according to the 2023 Clair Report. 

Second-hand luxury goods accounts for seven per cent of the personal luxury goods market, with some of the main reasons including circularity in fashion and a fast trend cycle. The following are key pieces expected to be popular as investment purchases in 2024 due to their appreciating value, with the percentage increase on their retail value listed accordingly:

• Fendi Baguette Bag, 113%
• The Row Sofia Bag, 800%
• Hermès Constance Bag, 127%
• Hermès Picotin Bag, 120%
• CHANEL Deauville Tote, 114%
• Louis Vuitton Neverfull, 136%