Hong Kong, China art sales drop a third as high-end market slows

AUCTION HOUSES in Hong Kong and mainland China made a third less in modern and contemporary art sales last year due to a dearth of ultra-high-end artworks on the market as vendors wait for a rebound in prices.

Auction sales fell 33% to $576 million in 2024 compared with the previous year, the lowest level since 2017, according to a report released Thursday in Hong Kong by law firm Mishcon de Reya and art market research and analysis firm ArtTactic.

A major driver of the drop was the small number of artworks for sale worth more than $1 million, the report said. The impact was most visible at the ultra-high-end — art worth $10 million or more — where there were just six sales totaling $114 million. In comparison, in 2021, 28 works in this category sold for a total of $456 million.

“This drop in supply reflects a broader lack of confidence among vendors of high-value pieces, many of whom are waiting for a resurgent market,” the report said, adding that the global art market had developed an over-reliance on the $1-million-plus segment. “This dependence has made the market overly vulnerable to the buying patterns of a small pool of ultra-wealthy collectors.”

The report brings the market into focus as , one of the most important fairs for contemporary art, is set to take place in the Asian financial hub next week. About 240 galleries from 42 countries and territories will attend the event.

Chinese-French master Zao Wou-Ki led the $1-million-plus category in 2024 with sales of $49 million, with Japanese contemporary artist Yayoi Kusama ranking second with $46 million in sales, the report showed. Claude Monet, Mark Rothko, and Vincent van Gogh also featured in the top 10.

Despite the slump in expensive artwork sales, consignments under $50,000 gained popularity among collectors in the region. Lots sold for less than this price jumped 70% from 2022, while auction sales by value increased more than 17% over the past two years.

“The softening at the upper end of the market has stimulated activity at more accessible price segments,” the report said. “This evolution not only highlights the adaptability of the market, but has opened avenues for new collectors, particularly from Millennial and Gen Z demographics.” — Bloomberg