The 17.4% contraction in global art auction turnover in H1 2019 has highlighted the new disequilibrium between declining supply and ever stronger demand, especially for Modern Art masterpieces. Meanwhile… Sotheby’s Q2 2019 financial report (one of its last before the company is delisted) clearly points to rising operating costs. In short… the major auction operators urgently need to adopt strategies capable of perpetuating the growth of the Art Market (which essentially began half a century ago) by greatly enhancing the circulation of works and substantially reducing transaction costs.
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thierry Ehrmann, founder/CEO of Artprice, observes that, “the first results of
the second semester already suggest the outlines of a new Art Market structure –
a configuration that facilitates greater exchanges on a global scale and focuses
much more on online sales.”
Christie’s kicks off the season in China
The world’s biggest art auction operator on the planet opened the second half of
2019 with a major Fine Art session in Shanghai. Benefiting from the absence of
its Anglo-Saxon rivals in mainland China (since Sotheby’s quit Beijing in 2015),
the first big sale of H2 2019 (20th century & Contemporary Art) generated
handsome results showing a steady progression over 3 years for its late
September Shanghai sale:
24 September 2017: $12.6 million (RMB 83 million),
21 September 2018: $15.8 million (RMB 108 million),
21 September 2019: $ 7.5 million (RMB 124 million).
With a single unsold from the 30 lots offered during this prestigious session,
including an imposing sculpture by Salvador Dali, a small abstract painting by
Gerhard Richter and a rare photograph by Andreas Gursky, the Chinese art market
proved it is not turning its back on the West…. However, East/West exchanges
are currently being dampened by China’s import policy. The sales catalogue
clearly indicated that the main lots “come from abroad” and can only
definitively enter the People’s Republic of China after the relevant taxes and
customs fees have been duly paid.
Among the lots covered by this clause was the evening’s star lot, Voie Lacte –
09.11.1956, by Zao Wou-Ki, which generated the world’s best Fine Art auction
result this September. The work’s price has increased substantially over the
last 20 years, during which Christie’s has auctioned it three times in Asia:
$202,000 on 12 April 1998 in Taipei
$550,000 on 25 April 2004 in Hong Kong
$8 million on 21 September 2019 in Shanghai
Christie’s has been trying to stabilize its sales in China for nearly 20 years
now by developing a second marketplace to support its Hong Kong activity. After
opening an outlet in Taipei from 1994 to 2002 and then testing Beijing for a
year in 2006, Christie’s appears to have found the right solution with this
prestigious Shanghai sale in late September. Earlier in the day (21 September)
the same auctioneer also generated over $1.3 million from another sale entitled
FIRST OPEN | Shanghai: Living With Art.
Street art dominates the landscape…
The British artist Stik (born 1979) already has a new auction record as the
second semester gets underway. His work Liberty (2013), a complete set of 5
colour screen-prints (numbered AP 4/5) fetched $250,000 at Christie’s on 18
September in London. Stik’s work, first auctioned in 2016, is enjoying
exponential demand growth: his 31 lots sold at auction this year have already
generated more than a million dollars. He is now one of the most sought-after
street artists on the market alongside Kaws and Banksy.
Meanwhile, the world’s top two auction houses both organised online Banksy sales
in September. Sotheby’s (6-19 September) and Christie’s (11-24 September )
brought together a total of 74 small Banksy works… all of which were
purchased. Girl with balloon (2004), numbered AP 51, reached $493,000 at
Christie’s, suggesting a highly favorable context ahead of the sale of his
painting Devolved Parliament (2009) which could well beat his current auction
record of $1.87 million hammered at Sotheby’s New York for his Keep it spotless
(2007) in February 2008.
The French market highlights its national artists
