Major auction houses expand in Asia despite slowing market
Date
8/20/2024 8:41:14 AM
(MENAFN) The world’s leading auction houses are intensifying their efforts to capture the attention of Asia’s ultra-wealthy by expanding their presence in the region. Christie's, with its 250-year history, is set to relocate its regional headquarters to a new, expansive 50,000-square-foot site within Hong Kong's newly constructed Henderson skyscraper in September. This move is part of a broader strategy to increase its Asian sales through a year-round auction schedule. Similarly, Sotheby's has opened a new retail location in Hong Kong’s bustling business district and has relocated its offices within the city. Bonhams, another major player in the auction world, will also establish its new headquarters in Hong Kong in September, while Phillips has already moved to a new venue.
These expansions are occurring despite a noticeable slowdown in the global art market and a significant drop in luxury spending in China. Art sales at Hong Kong's top evening auctions fell by 40 percent in value in the first half of the year compared to the same period last year, marking the lowest level since 2017. China's economic growth has also been weaker than expected, rising by only 4.7 percent in the second quarter of this year amidst ongoing challenges in consumption and economic instability. Some analysts have suggested that these economic difficulties could negatively impact the art and luxury goods sectors.
Despite these concerns, Francis Billin, chairman of Christie's in Asia, remains optimistic about the luxury market. He argues that while the general luxury sales in China may be underperforming, his company’s high-end clientele, predominantly from mainland China, Taiwan, or Hong Kong, is resilient. Billin points out that the high-net-worth individuals who purchase their high-value, limited-edition items are less affected by economic downturns, as these buyers possess significant wealth and are adept at safeguarding their investments.
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