5 luxury bags with the best investment value – according to the experts (2024)

Even if stored in perfect condition, it’s difficult to determine how much an item will be worth in the years that follow.

As customer choices are influenced by shifting trends, the market for luxury fashion collectibles is even more unstable. In recent times, however, legacy brands have started to raise their pricing, which may have decreased sales but in turn have increased scarcity and consequently the amount people are willing to spend on luxury goods.

According to Thomas Kralow, founder of online learning platform for traders and investors University Grade Trading Education, the stock market has grown by 10 per cent in the last 10 years, and gold has soared by 21 per cent. But a Chanel bag? By 100 per cent.

But it’s not as simple as running to a luxury store and cashing out on bags expecting to earn a small fortune from reselling them. Not all bags will retain their value. Luckily for you though, we have curated a list of five bags that have proven their value over time as a great investment.

1. Chanel Flap Bag

16 per cent value increase since 2022

One of the most important pieces of advice for those interested in investing in luxury items? Stick to the classics. Trendy bags like the Dior Saddle Bag may come and go, and chances are they won’t be in demand any more when you’re looking to sell them.

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On the other hand, a timeless staple like the Chanel Flap Bag will never fail you. It simply never goes out of style. According to Sotheby’s, the bag is 10 times more expensive now than it was in the 1990s. In fact, the value of a Chanel Flap Bag has increased by 50 per cent between 2020 to 2022, per Fashionista, and then went up another 16 per cent since last year, states Sotheby’s.

2. Hermès Birkin

41 per cent value increase since 2021

While keeping the classics in mind, it’s also important to note that scarcity and exclusivity drive customer appeal too. A good example of this is the Hermès Birkin. A fan favourite among luxury good collectors, the Birkin generally does well in auctions depending on the condition of the bag.

The Hermès Birkin had the highest average return – 38 per cent – of any collectible luxury bag in 2020, according to Deloitte and Credit Suisse. It’s also important to note that the bags come in an array of colours, sizes and leathers. According to reports, the Togo leather Birkin 25 has the highest demand among consumers, with classic colours such as gold.

Limited-edition Birkins like the Diamond Himalaya Birkin 30, which sold at a Sotheby’s auction for almost US$440,000 in 2022, also have a high resale value.

A rep from Fashionphile told Fashionista that the value for the Hermès Birkin 30 has risen by 41 per cent within the past two years alone.

3. Hermès Kelly

5 per cent to 16 per cent value increase since 2022

Similar to the Birkin, the Hermès Kelly bag is a highly coveted collectible. Annual price increases make the bags a natural investment, as previously reported. The beginning of 2023 saw an eight to 10 per cent increase across Birkin and Kelly models.

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The Kelly 25 Retourne Matte Gator in particular has seen a 16 per cent price increase since 2022 from US$36,100 to US$42,000, as per Madison Avenue Couture. The Retourne Hermès Kelly 28 has also seen the largest increase in average auction price – 14.5 per cent – indicating an increase in demand, states Sotheby’s.

4. Louis Vuitton Neverfull

20 per cent value increase from 2021 to 2022

According to research data from The RealReal, Louis Vuitton and Chanel are among brands that hold their value best over time.

LV’s Neverfull, launched in 2007, is perhaps one of the brand’s most iconic bags. The Neverfull holds a 91 per cent resale value on average, according to The RealReal.

Its retail price increased from US$625 to US$2,030 after its 2007 release, representing a 307 per cent increase in value over the course of 15 years, as reported by LVBagaholic. According to Petite in Paris, the Neverfull MM’s price went up from 20 per cent from 2021 to 2022.

5. Telfar’s Shopping Bag

195 per cent value retention

The last one on the list is more accessible in terms of price.

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Telfar’s vegan leather bag prices start from US$150. Introduced in 2014, these bags are highly sought after and, like Hermès does with the Birkin, Telfar drives demand by limiting supply, earning the bags the apt moniker “Bushwick Birkin”. According to CNBC, the Telfar bags have an average value retention of 195 per cent, meaning they appreciate to almost double their initial retail cost.

In fact, the bags have gotten so popular that, according to resale marketplace ReBag, Telfar bags outperform even luxury labels like Chanel or Hermès in terms of value retention. (Is this the power of “quiet luxury” at work again?)