Hirst sale signals peak in the UK Art and Antiques market – ‘for now’, says RICS
Arts and Antiques Survey – Quarter three 2008
Fewer housing transactions are taking their toll on mid to lower range arts and antiques sales but the super rich continue to snap up rare and contemporary high end pieces as they seek refuge from the current financial crisis, according to the RICS UK Arts and Antiques survey published today (7 October).
Despite Damien Hirst grabbing all the headlines with his recent record breaking sale, two percent more surveyors reported a fall than a rise in lot prices in Q3 2008 signalling a slowdown that will become more visible through what is traditionally a busier fourth quarter.
It seems average buyers are reassessing their spending in the current financial crisis, with surveyor sentiment remaining negative in the high volume £1 - £5000 lot sector. Conversely, the £50,000+ sector remains reassuringly strong with 39 percent more surveyors reporting a rise in lot prices than a fall.
Seen as mid to long term protection from the financial gloom that is stalking the housing and stock markets, the super wealthy are never far from high-priced quality pieces with cash rich Middle Eastern, Russian, and Asian buyers on the lookout for traditional native items and contemporary art.
Jewellery (+30) and silver (+28) antiques continue to perform strongly at auction on the back of strong commodities and precious metal markets, with considerably more chartered surveyors reporting a rise than a fall in lot prices in Q3.
In contrast, lot prices for furniture, oils and water-colour paintings, ceramics, and clocks, remain stagnant with surveyors reporting slight drops across these sub sectors.
RICS spokesman; Andrew Davies says:
"Against a backdrop of turbulent financial markets, the higher end Art & Antiques market has continued to perform well. Investors are now becoming more selective in their purchases and this is likely to carry on as the super rich continue to use the industry as an alternative investment vehicle. The contemporary art sector has rocketed over the past few years, with a sudden correction now a strong possibility.
Other 'traditional' areas of collecting, such as antique furniture, are slightly undervalued as people shy away from purchases during the housing market downturn. However, we do not expect this to last for long as savvy investors are never far from potential bargains.”
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 86,000 chartered members (FRICS and MRICS) and 55,000 members in other categories of membership (TechRICS, trainees and students) globally. It represents, regulates and promotes the work of these 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). Visit www.rics.org/press
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