RICS Arts and Antiques Q3 2010 Market Survey
HONG KONG, Nov. 2, 2010 /PRNewswire-Asia/ -- Art and antiques prices continue to rise, as more buyers turn to the market as an alternative investment, says the latest RICS (Royal Institution of Chartered Surveyors) Art and Antiques Survey.
26 per cent more chartered surveyors reported a rise in art and antique prices, up from 24 per cent the previous quarter. Prices are rising as consumers increasingly view art and antiques as tangible assets, which perform better than other forms of investment. The popularity of art and antiques is also being felt at auctions, with 62 per cent of surveyors reporting a rise in attendees to auction houses over the last three months, up from 47 per cent.
Revealing the continued strength of the market, the All Lot price balance recorded its seventh consecutive positive reading. Price increases were most noticeable in the mid category range of £1,000 to £5,000 (or HKD12 500 to HKD62 500), where 33 per cent more surveyors reported prices rising than falling, an increase from 17 per cent in the previous three months. There were also increases in the lower and higher price bands, but at a slower pace.
Precious metals continue to command historically high prices, and as a result the silver and jewellery sectors outperformed other sub sectors. 55 per cent more surveyors reported silver prices rising, down slightly from a net balance of +58 during the previous three months. Most other sections of the market reported increases, with only contemporary art recording a negative price balance, but at -1, the fall was minimal.
Over the next 12 months surveyors predict demand will outstrip supply, although the imbalance between the two is narrowing. 44 per cent more surveyors expect demand to increase rather than decrease, while a net balance of +36 expect an increase in supply.
Commenting on the UK market, RICS Chief Economist, Simon Rubinsohn said, "The UK art and antiques market is buoyant at the moment; as buyers continue to invest in material assets during uncertain economic times. However, surveyors are raising concerns over Droit de Suite*, an initiative which could affect the UK art market and the quality of lots available for sale. As art is mobile it tends to be sold where market conditions are most favourable, but the higher transaction charges and administrative costs associated with Droit de Suite could drive buyers away from the UK market and towards growing markets like China."
Commenting on Asia's arts and antiques market, Chairman of RICS, David Faulkner said, "Asia in general, and Hong Kong in particular, is now a major centre for both Asian and Western art and antiques. The increasing number of major art exhibitions and auctions of a wide range of both modern and historic pieces has led to record prices being achieved. The increasing demand from China, both in terms of money available to buy art and also the desire of Chinese collectors to buy quality items at the higher end of the value chain, means that the arts and antiques sector is set to grow further in Hong Kong."
Notes for editors:
www.lapada.org/public/The_British_art_Market.pdf
RICS Arts & Antiques market survey
Published quarterly, the RICS Arts and Antiques Survey measures surveyor confidence in the general arts and antiques market and in certain sub-sectors including gold and silver, furniture, pictures, ceramics and clocks.
About RICS & RICS Asia
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 150,000 members globally and represents, regulates and promotes the work of property professionals throughout 146 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.
Media enquiry, please contact:
RICS Asia Public Relations Representative
Ms Belinda Chan / Ms Ava Lau
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9829-2913
Email: belinda@creativegp.com / ava@creativegp.com
