Does the plummet in Chinese auction sales bode a return to a 2008 crash market?
On 22 June 2012, ArtTactic released a new report on the Chinese art market that contains signs of a significant slowdown in auction sales. China’s four highest-selling auction houses have experienced a 43 percent drop since the same time in 2011.
Auction results from 2011 confirmed the Chinese art market as the largest in the world, yet results from spring 2012 sales exhibit signs of a slowing market.
The total auction sales (all categories) this spring from the Big Four (Sotheby’s Hong Kong, Christie’s Hong Kong, China Guardian, and Poly Auction) have dropped 32 percent from USD2.2 billion in autumn 2011 to USD1.5 billion this spring. The overall result is 43 percent lower than the peak of the Chinese art market in spring 2011.
Among the Big Four, China Guardian suffered the largest abatement in overall sales, with a sales total 45 percent lower than that of autumn 2011. Despite a drop of 39 percent, Poly Auction still managed to claim the top position with a USD485 million sales total, 36 percent higher than Christie’s, who came in second.
Though the sell-through rates for Sotheby’s and Christie’s spring auctions were relatively high, Asian modern works clearly outnumbered and outsold contemporary. The flight to more established artists may be a result of collectors shifting their art investments to works with greater longevity and less risk exposure.
- Indian Modern and contemporary market treading water? ArtTactic reports decline – April 2012 – with two Asian markets sinking, could the crisis become global?
- Sotheby’s Hong Kong spring 2012 auctions: Modern Asian art still outselling contemporary – April 2012 – rush to modern over contemporary may be indicative of risk-averse collectors
- Rich swap stocks for art: Investment, passion or a bit of both? – February 2012 – motivation may be a key factor in whether or not the contemporary art boom is sustainable or just a passing fad
- New records for Chinese auction houses despite market slowdown – ArtTactic report – January 2012 – the record year obscured a significant downturn between the spring and autumn sales
- How confident is the art market? Depends on the price range – October 2011 – confidence in the art market soured as early as late 2011
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