【Hong Kong】Overseas Auctions Holding Steady… Art Market Shows Temperature Differences [Cooling Art Market②]

Phillips Hong Kong also records 97% sell-through for 20th-century works.
Despite a smaller scale compared to the past year, the market remains active.
Luxury sectors like jewelry, wine, and handbags show strength.
Criticism arises that special auctions are masking the market’s downward trend.

Is it ‘remains’ or ‘robust’? Where should the emphasis lie in President Belin’s statement?
While the Korean art auction market is experiencing a chill, overseas auction markets are still hot. The ‘Christie’s Hong Kong 20th/21st Century Art Auction’ held from November 30th to December 1st recorded a total hammer price of HK$1.232 billion (approximately KRW 205.9 billion) with a sell-through rate of 91%. The special auction of Marc Chagall works achieved a 100% sell-through rate. President Belin stated, “This auction brought the annual total for the 20th/21st Century Art category in Asia to HK$3.4 billion (approximately KRW 568.7 billion) in sales,” adding, “This is the second-highest sales figure in Christie’s Hong Kong history, confirming the art market’s resilience even amidst China’s COVID-19 lockdowns.”
Phillips Hong Kong’s auction held during the same period also performed well. While the total hammer price of HK$350 million (KRW 58.2 billion) was lower than Christie’s, it successfully sold 32 out of 33 lots in its main Evening Sale of 20th Century & Contemporary Art. In the Day Sale, 128 out of 152 lots were sold, achieving an 84% sell-through rate.

While the results of the recent two auctions appear good on the surface, a closer look reveals warning lights flashing in various sectors. Christie’s Hong Kong Evening Sale (20th/21st Century Art) held on the night of November 30th totaled HK$817.8 million (KRW 136.5 billion). This figure shows a significant difference compared to HK$1.4 billion (KRW 233.7 billion) in May this year, HK$1.5 billion (KRW 250.4 billion) in March last year, and HK$1.6 billion (KRW 267.1 billion) in May last year.
The number of lots also decreased; previously hovering around 80, this time it was reduced to 68. The Tyrannosaurus Shen skeleton, which was supposed to be a highlight, was withdrawn from auction due to “doubts about its completeness.” The masterpiece ‘Potted Prunus (1940s)’ by Sanyu, estimated at HK$85-100 million (KRW 14.2-16.7 billion), was also withdrawn just before the auction. Works by popular artists Zao Wou-Ki (estimated HK$68-98 million) and Wu Guanzhong (estimated HK$19-25 million) went unsold. Looking solely at the core Evening Sale, it’s clear the auction market is not as buoyant as before.

In contrast, the luxury sectors including furniture, jewelry, wine, handbags, and watches achieved 100% sell-through, and the special Chagall exhibition was completely sold for HK$74.4 million (KRW 12.5 billion). American female abstract artist Joan Mitchell’s work ‘Untitled (1966-67)’, who showcased her presence in a two-person exhibition with Monet at the Fondation Louis Vuitton in Paris, was sold for HK$83.35 million (KRW 14 billion), setting the highest price of this auction.
Ultra-contemporary artists (born after the 1970s) also achieved notable results. Nicolas Party’s (42) ‘Blue Sunset (2018)’ was sold for HK$52 million (KRW 8.7 billion) after several rounds of bidding, setting a new artist record and surpassing the record set at Christie’s New York last November. At the Phillips auction, María Berrío’s (40) ‘The Lovers 2 (2015)’ was sold for HK$9.93 million (KRW 1.65 billion), well above its high estimate of HK$6 million.

November 30th, when the evening sales of the two global auction houses were held, was also the day former Chinese President Jiang Zemin, the third-generation leader who led China’s reform and opening-up, passed away. The American art media Artnet interpreted, “It may suggest that the flow of the global art market has changed amidst global economic uncertainty and geopolitical instability. Wednesday night’s auction was held against the backdrop of China’s economic, social, and political instability,” but added, “Challenging works by young artists remained strong.”
Some in the market criticize that special auctions, following complete sell-outs and blockbuster sales, are masking the art auction market’s downward trend. The late Paul Allen collection auction held in November and the Chagall collection held in Hong Kong following London are prime examples. The Paul Allen collection achieved a total hammer price of $1,506,386,000, the highest for a single auction. President Belin emphasizes, “Above all, the auction is about the artwork, the curation is important, and the role of the specialist is crucial.” Whether to place emphasis on ‘remains’ or ‘robust’ is up to the collectors.