Diamond-encrusted Hermes handbag sold for record $300,000

The handmade bag is encrusted with diamonds, while the buckle and trademark mini Hermes padlock are made of 18 carat white gold AFP/Isaac Lawrence

HONG KONG: A diamond-encrusted crocodile-skin Hermes handbag with white gold details has broken the record for the world's most expensive ever sold at auction, fetching nearly $300,000 at a Hong Kong sale.

The rare Himalaya Niloticus Crocodile Diamond Birkin 30 went to an unknown phone bidder late Monday (May 30) for HK$2.32 million ($298,655), beating a pre-sale estimate of $2 million, the auction house Christie's said.

"It was the world record price for any handbag sold at auction," Bingle Lee, a Hong Kong-based spokesman for Christie's, told AFP.

Designer handbags are increasingly seen as investment opportunities and are the latest craze for collectors, taking global auction houses by storm and scoring record prices.

The new record beat one set last year, also in Hong Kong, when a fuchsia-coloured Hermes bag sold for $222,912.

The handmade bag - described by the London-based auctioneers as the "rarest, most sought-after" - is encrusted with diamonds, while the buckle and trademark mini Hermes padlock are made of 18 carat white gold.

"It is believed that only one or two of the Diamond Himalayas are produced each year, globally, making it one of the lowest production runs for handbags," Christie's said in a statement issued before the sale.

The bag was made in 2008 and is from Hermes' iconic "Birkin" series named after actress and singer Jane Birkin, who was born in Britain and lives in France.

A smaller Himalaya Niloticus Crocodile Diamond Birkin 25 handbag will go under the hammer on Wednesday with an estimate price of HK$1.3 million to HK$1.5 million.

The auction was part of the firm's 30th anniversary sales to mark its presence in Asia, with a range of luxury goods on offer, including Chinese paintings, watches and wine.