RICS Arts and Antiques Survey -- Quarter Four 2008
HONG KONG, Jan. 20 /PRNewswire-Asia/ -- The previously robust Contemporary Art sector has suffered a turnaround in fortune with buyers reining in spending as they come to terms with the continuing global financial crisis. In Q4 2008, 41 percent more surveyors reported a fall than a rise in prices compared to a positive reading of 41 percent in Q3, according to the RICS Arts and Antiques survey published today (20th January).
Despite the fourth quarter being traditionally the busiest in the auction rooms, 32 percent more surveyors reported a fall than a rise in all lot prices signaling a slowdown in the market. The 'all lots' balance fell to new lows in the 5,000 - 50,000 pounds and 50,000 pounds + tiers, with 22 percent and 23 percent more surveyors reporting a fall than a rise.
The top end of the Arts and Antiques market, particularly the Contemporary Art sector, has over the last year remained consistently strong despite the growing economic problems. A high volume of job losses in the financial services sector is now having an impact.
The lack of movement in the housing market is also leading to a decline in the number of goods being offered at auction and this continues to affect the lower and middle tiers of the market. 45 percent more Chartered Surveyors reported a fall than a rise in the 1 - 1000 pounds market and 39 percent more Chartered Surveyors reported a fall than a rise in 1,000 -5,000 pounds price tier.
The jewellery sector remains relatively resilient with just one percent more Chartered Surveyors reporting a fall than a rise in lot prices in Q4. The picture regarding silver was broadly similar with Chartered Surveyors reporting a zero net balance on price changes. Buyers continue to see jewellery and silver as a long term alternative investment to the stock market, however they are becoming more selective in purchases as the credit crunch hits home. Sellers will need to become more realistic in their expectations in order to achieve sales.
RICS Spokesman, Chris Ewbank says: "The difficult financial situation is affecting all parts of the economy and the art and antiques industry is no exception, although the downturn has not been nearly as dramatic as in other areas of the economy. The Contemporary Art sector has soared over the past few years and we are now in the midst of a correction.
The slowdown in the amount of goods offered at auction is reflective of the lack of activity in the housing market. However, as prices and sellers become more realistic savvy investors will look to lower priced goods from 'traditional' sectors such as antique furniture. Investors will continue to become more selective in their purchases as buyers look to the industry as an alternative source of investment.
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