Investment in arts and antiques continues to rise
RICS Arts and Antiques Survey Q1 2008

PR025

More consumers are investing in the arts and antiques market, leading to a rise in lot prices, says RICS’ first Art and Antiques survey published today (22nd April 2008). The volatility of the financial markets appears to be encouraging consumers to switch to alternative investment opportunities.

20 percent more surveyors reported a rise than a fall in lot prices indicating that the arts and antiques market is still buoyant. 50 percent more Chartered Surveyors reported a rise than a fall in the performance of lots in the £5000+ band, signifying that consumers with disposable incomes are looking to purchase arts and antiques as long term investments.

The first quarter coincides with the payout of city bonuses commonly resulting in more activity in the arts and antiques market - this year was no exception. Given the current climate, many are turning away from the financial sector and are investing in tangible goods. However, the performance of lower price brackets- £,1000 -£5,000 lots and £1-£1,000 lots -were more subdued as only 7 percent and 4 percent more surveyors respectively reported rise in the first quarter of 2008 - an indication that amateur enthusiasts are reigning in their spending.

The rise in gold and silver prices has impacted on silver in the antiques market. Silver was the strongest performing sub sector in quarter one with 40 percent more Chartered Surveyors reporting a rise than a fall in silver lot prices. Unlike all of the other sub sectors, sentiment in the performance of silver, in all price tiers, was positively high.

14 percent more Chartered Surveyors reported a rise in furniture lot prices than a fall.  Significantly 37 percent more surveyors reported a rise in furniture lots in the £5,000+ price tier. Over the last few years demand and value for antique furniture has fallen as homeowners invested in contemporary minimalist décor. This quarter one rise can be attributed to the increase in demand from buyers as they become conscious of the good value antique furniture provides.

5 percent more surveyors reported a rise in picture lots than a fall, with £5,000+ lots performing particularly well - 44 percent more surveyors reported a rise than a fall in picture lot prices in the £5000+ price band. Surveyors linked this to the interest in the urban art market, with painting from the likes of Banksy, Damien Hirst, Peter Doig et al all selling in excess of £10,000. However the net price balance in the mid tier market was zero. The net price balance in the lower price band was negative at -30, indicating that prices are indeed falling in the lower price tiers within the art sector.

In the ceramics sub sector, two percent more surveyors reported a rise than a fall with 25 percent more surveyors reporting a rise than a fall in price of lots in the £5000+ price tier. However, surveyors were less confident about the performance of the mid and lower tiers with the net price balance for £1-£1,000 lots at -22 percent, indicating that prices in this band were falling due to the overall declining interest in ceramics.

The weakest performing sub sector was the clocks market. One percent more surveyors reported a fall in lot prices than a rise, showing that collectors are looking for long term investment items which they hope will attract a wider range of interest in later sales. Items such as clocks usually attract a niche group of collectors.

Surveyors’ confidence in the arts and antiques market over the next three months remains positive with 17 percent more surveyors expecting lot sales to increase, whilst 32 percent more surveyors expect lot prices to increase.

RICS spokesman; Christopher Ewbank, said:

“The arts and antiques market remains a viable investment option during this period of financial uncertainty. Many investors are using their disposable incomes to buy in at the high end with the hope that value will continue to stay firm while stocks and bonds ebb and flow.

“High salaries and large bonuses in many employment sectors have led to a high volume of new buyers entering the arts and antiques market, which has helped to push up the prices of lots. This is most evident in the arts due to the rise in popularity of 21st century art.

“Despite the fact that many American investors are shying away from UK auction houses due, to the continuing strength of the pound compared to the dollar, the sector will continue to perform while other investment opportunities carry a higher risk.”

Ends

Notes to Editors

About RICS
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries. RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).

Chartered Arts and Antiques Surveyors provide comprehensive and professional advice on valuations, purchases, sale and management of antiques, fine art and collectibles.

The RICS Arts and Antiques Survey is the only one of its kind and will be published quarterly.

The RICS question on measuring Arts and Antiques price changes is as follows:
“Indicate by how much average prices have changed over the last three months.” (Answers either being – falling, the same or rising)

Balance = Proportion of surveyors reporting a rise in prices minus those reporting a fall (if 30% reported a rise and 5% reported a fall, the unadjusted balance will be 25%) and proportions are based on simple weighted averages of the three price tiers.

The weighted average balances cited for each lot type are based on equal weightings attached to each price tier, of which there are three: £1-£1000, £1000-£5000 and £5000+. 

For Further information, please contact

Shella Ali
Press Officer
RICS Communications
T: +44 (0)20 7334 3703
F: +44 (0)20 7695 3722
E: sali@rics.org

All RICS press releases can be found at www.rics.org/press