Where’s the Asian art market headed?

An uneven set of results from Sotheby’s autumn Hong Kong sales that wrapped up last Thursday indicates that the surging Asian art market is pausing for breath amid rocky times for financial assets such as stocks. While the auction room was crowded with bidders from mainland China and the British auctioneer switched between English and Chinese as he called out prices, a fifth of the 41 pieces failed to sell. The sale came near the end of a week of auctions for wine, art, jewelry and other collectibles.

The sales in Hong Kong are a barometer of the Asian art and collectibles market, which has come to be dominated by newly wealthy mainland Chinese. They have helped the city become the world’s third largest auction center after New York and London. Art market observers said Asian buyers are getting pickier amid the wobbling financial markets. Sales of big-name Chinese artists are being snapped up while mid-tier names are being passed over. (AP)

Whilst Chinese art has steamrolled to fresh highs, with its market share of the global contemporary art auction market having grown from 0.9 percent in 2002 to 27.7 percent in 2010, according to art consultancy ArtTactic. The market is prone to manipulation and speculation by aggressive syndicates playing the sector and hyping up artists almost like venture capitalists. While few went as far as describing the Sotheby's sales as a tipping point, some say the softening demand presented a potential opportunity for certain categories including ink works and more traditional, scholarly asset classes. (Reuters)

The slump in the art market may well be a thing of the past, if these current and upcoming initiatives are anything to go by. From on-ground and virtual art fairs to privatised funding and corporate backing, of late artists are receiving support from all quarters. Feroze Gujral, model-turned-entrepreneur, started Outset India this year as a means to attract private funding for art in India.

She sums up the scope of India’s art market saying, “The contemporary Indian art scene is growing at a fast pace, second only to China. It is considered as a serious business with a turnover of over $350 million in 2011. It is an investment taken very seriously by all. Our country has immense potential to flourish in this space.” (Hindustan Times)