Full Annual Report Artprice

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fall, I had already transferred to this forum Artprice preliminary version of the report for 2009

Now they have published a full version, which I invite your attention, if not fully mobilized to some other object, the more important

Artprice: Art Market Trends in 2009 - part one (the rest have not yet translated)

Artprice published its annual report on the state of the art market, based on 5.4 million results public auction 3600 auction houses. This report contains macro-and micro-economic analysis of transactions on the works of art and the evolution of their prices, as well as a list of TOP 500 artists on annual turnover and a list of 100 largest trading results.

A brief background

Before the crisis in the market formed a speculative bubble, which caused the uncontrolled rise in prices for works of art. These rates are many times higher than the level achieved during the previous bubble in 1990 in late 2007, the global price index was 15%higher than in 1990 in U.S. prices on art between 1990 and 2007. increased by 88%! 15 and 16 th September 2008 Sotheby's has organized a public sale of more than 200 works Demiena Hirst, to set them up for sale directly from his studio, passing the gallery, with extravagant result: 95.5 million pounds (171.6 million dollars). But while Hirst prezdnoval its success, the American bank Lehman Brothers going bankrupt. This was the start of the crisis, which has affected the art market: in the second semester of 2008 the percentage of unsold works dizzily growing, approaching 43%, whereas it usually does not exceed 30-35%of the auction house did not have time to respond to the new situation and to reduce the pre - assessment offered for sale products (catalogs have already been published). Adaptation assessments occurred in early 2009

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After a period of euphoria, the major auction houses of Christie's and Sotheby's at the head had to make major concessions to avoid a catastrophe as the main danger was not lowering prices, but the cessation of procurement. This fear of freezing the market was justified because the potential customers, including investment funds, have lost in the crisis a lot of money and was a risk that they will withdraw from the art market. Memories of the previous failure of the wound Art in 1990-1992. contributed to a general nervousness.

To reduce losses auction houses were forced to cut its staff (about 20%at Christie's) and make an internal restrukturatsiyu - combining several departments (mergers and divisions of the old masters of art of the XIX century by Christie's, case sales in Phillips de Pury & Company), as well as lower reserve price (in December 2008, Christie's announced the lowering of not less than 10%) and practically abandon the guaranteed sales, but without them, Sotheby's et Christie's has made it much harder to find work for their extraordinary quality of trades, especially among potential Sellers panic - they were afraid to be "shown" their work and preferred not to put them on sale.


Correction

that klimet general distrust and financial morass between 2007 and 2009. led to a reduction in the number of trades with the result of over a million, up 59%. Especially down the market higher sengmenta modern art - the fall of the vast number of trades was 77%(193 million bargain in 2008, 44 - in 2009). Of course, this is a severe correction, but compared with the results achieved in the early 2000's., The market still achieves quite good results: in 2009 the vast number of trades prevyschaet twice their number to the formation of a speculative bubble.

Very serious fall in the higher segment of the art market by tonosheniyu to the results of the 2006 +, 2007 and 2008. Led to a sensitive reduction of profits auction houses worldwide. Annual turnover of transactions on the art fell compared with 2008 at 3.7 billion dollars, compared with the same crazy results in 2007 (9.3 billion dollars), he fell exactly in half. Naturally, more than all the affected regions, specializing in the highest segment of the art: on sravneniyub since 2008 Britain has lost 1,9 billion dollars, the United States - 1.6 billion.

Characterized this period strong deflation comparable with the previous crisis. We recall that between 1990 and 1992 prices fell by 44%(Artprice Global Index, an index is calculated by the method of repeated sales). Between the end of 2007 and first quarter 2009 drop in prices has reached 37.4%. Then, during the second and third quarters of 2009, prices have stabilized, after which, since October 2009, they began to grow in parallel with the rise of stock indices Dow Jones (10 548 points on 29 December) and the S & P 500 (1 126 points 29 December). In the second quarter on the art market confidence has returned, the percentage of unsold products fell to 37%against 40%in the first quarter of 2009 and 43%in autumn 2008

Compared with the period of speculative growth of the market trends have changed: first, the command now is not the sellers and buyers, and secondly, the proportion of the higher segment of the market has declined: the number of products offered at a price of 10000 and 100000 dollars between 2007 and 2009. fell from 22%to 14%, while the number of products whose prices are below $ 5000, reached 75%of lots and increased compared with 2008 by 11%. Thirdly, the reduction of transactions in the sector of modern art offset by an increase in their sector of the old masters and modernist art: between 2008 and 2009. sale of contemporary art fell from 16%to 10%of worldwide turnover, but the proportion of the old art has risen from 6,8%to 12,5%, and the modernists - from 44%to 48%.

Shoe in Contemporary Art

Between 2002 and 2008 in a segment of contemporary art, one record replaces another, a total had risen to 225%. For Sale exhibited more and more products. The market works with the price above 100,000 dollars between 2002 and 2008. proportion of contemporary art has risen from 4%to 20%. After the crisis is bucking the trend: in 2009, contemporary art is 12%of the total turnover of higher market segment, between 1 st January 2008 and the end of 2009 prices had fallen by about 40%.

The first auction in 2009 passed without a new record, but managed to avoid the worst. Auctioneers have decided to exercise caution and feel the new market conditions by reducing the number of lots: 27 at Sotheby's, 30 at Christie's, 50 at Phillips de Pury
& Co. This has allowed Christie's to achieve a low percentage of unsold lots (26%). Rejected even the works of the most famous artists - Mark Rothko, Anish Kapoor, Sir Francis Bacon, Jeff Koons. At the May auctions in New York increased the number of proposed lots - all three auction houses in total, offered 753 works of contemporary art at $ 180 million, ie 660 million dollars less than the same bid in 2008 compared to May in 2008 the vast number of trades decreased by 3 times (in 2009 - 40, 2008 - 132). Recall that in May 2008, Sotheby's achieved the best results on modern art, reaching a turnover of 320.6 million dollars and exceeded the most optimistic forecasts. In May 2009 he was forced to settle for 40 mg. As for Phillips de Pury et Company, the results of this company quite satisfactory, despite the selection of products more affordable in monetary terms: in May 2008 it was 13 million trades on contemporary art in May 2009 - none. The result of trades - 6.4 million dollars - constituted half of the expected.
Auction Houses do not think that introducing the bidding of the most iconic works of the most famous authors, they will reduce the risk. Therefore, the most speculative of the contemporary artists in 2009, rarely appear at auction. In comparison with 2008 was presented to five times smaller pieces Suboda Gupta, three times less Banksy, Richard Prince and Demiena Hirst.

It should be noted that proceeds from the sale of works by contemporary artists from developing countries simply melted away: the annual turnover Gupta, India's first avant-garde, has fallen by 95%(from 15.1 million to U.S. $ 627,000), and Noman Masriadi, the most quoted modern Indonesian artist, earned in 2009 a quarter of its results for 2008 (2 million to 8 million), Takashi Murasaki turnover fell by 10 times (32 million in 2008, 3 million in 2009), Hirst revenue decreased 14 times - this hero buying fever, which account for 2008 was 65 million auction in 2009 sold only 2 million of bargaining. Jeff Koons was also affected by the new market conditions - the first turnover of 89 million down to 28, the price of NGOs rayuboty fell by 39%(2007-2009).

The same holds, modern Chinese authors who once regularly achieve ever new records: Wang Gyandzhi turnover fell by 75%, Zhu Shunia - 57%, Liu E - 65%, Pays-Ming Yang - 80%, SE Minzhuna - 84%, Zhang Xiaogang - by 86%and Liu Syaodona - by 88%!

This lack of interest in the way for fresh sponsors offset by increased attention to the art of ancient China and its interwar art. Chinese abstraktsionsty Shu Te-Shun Zhao and Wu-ki rose in price and reach an annual turnover of 6.3 million dollars.

Contemporary art market, from which cut the excess fat, does not feel so bad. Prices there have reached the 2004 level, ie the period preceding the emergence of a speculative bubble. It has become more accessible: the number of works sold at a price below $ 5000, for the last two years has increased by 13%, reaching almost 74%in 2009

Records of the crisis

In early 2009 the situation was extremely nervous. As the financial markets, on the art market continued to decline in activity, and a barometer of confidence Artprice - Art Market Confi dence Index - down 20 points and reached the level of November 2008 In early 2009, the New York session sale of art by old masters Sotheby's, the proposal has not been reduced (289 lots), but the demand has become very selective. Result - 45%of unsold lots. However, the millionaire collectors are still buying, allowing the landscape Turner's "The restored temple of Jupiter Panelleniya" break the wall of $ 10 million and to reach 11.5 million dollars (500,000 dollars less at the bottom of the provisional estimates).

The difference with the crisis of 1990. lies in the fact that transactions in the top segment of the art market have been frozen. In the first quarter of 2009 was hzaregistirovano 80 million bid (two times less than in the corresponding quarter in 2008). Thirty of them were achieved on the sale of the collection of Pierre Bergé /Yves Saint Laurent, which shows the dynamism of the market when it comes to works of museum-quality. These tenders were organized house Christie's at a time when Wall Street has reached humbly level over the past 12 years (S & P 500 fell to 743.33 points). Thus, despite the negative economic indicators of quality of goods possible to achieve remarkable results, particularly in these auctions were implemented four of the ten largest in prices and world records for Matisse, Brankushi, Mondrian, de Chirico, Duchamp, Klee, Ensor, Gericault .
But the success of these trades - an epiphenomenon. Their result - 480 million (of which Dole works of art is 265 million) entirely emer because it makes 66,7%of total sales results in Paris for 2008 Other trades have not used such scrutiny the media and the public, except for sharp masterpieces coming from private collections, such as canvas by Tamara de Lempicka, auction at the May New York's bid. On May 5, her portrait of Marjorie Ferry reached at Sotheby's auction record of 4.3 million but the next day, Christie's sold a portrait of Mrs. M. Over 5.4 million, burying the previous record.

During the summer auctions Christie's and Sotheby's art staryh masters proved to be more cost effective than contemporary art. In London, the old masters allowed to reach 39 million pounds (about 64 million dollars), that is, 1 million more than the June session of contemporary art.

At Christie's auction on July 7 was achieved three records: Madonna with the Holy Elihzavetoy in a landscape by Fra Bartolomeo della Porta Baccio - 1.9 million pounds (3 million), "Blueberry pie and inverted Nautilus Willem Claesz Hedda - 1.2 million pounds (1.9 million) and "Portrait of a young nobleman" Giuliano di Piero Budzhardini - 700000 pounds (1.13 million dollars). The next day, Sotheby's has made nine records, the most important of which - the work of Gabriel Metsu, which sold for 1.6 million dollars, Luke Dee, Tommy, and especially "Prometheus" Husepe Ribera, sold for 3.4 million pounds (5.5 million).

Bidding works of old masters, held in late 2009, confirmed this trend, first in Beijing, which had been achieved two new records - 22 November, a fresco on paper, "Eighteen archers" Wu Bin prodlalas for 22.1 million dollars, and in few minutes "Letter" Zheng Gong - for 14.2 million dollars. These Chinese artists at some time have become champions of the ancient figure in the world.
After two weeks in London, Christie's has achieved four records at the London auction of old masters, in particular, the world record at the picture of Raphael's "Head muse," sold for 42.7 million dollars (this is the second podium result of the general art of old masters, regardless of technology) as well as the portrait of Rembrandt sold within the provisional estimates for 18 million pounds (29.5 million dollars) and at St. John the Evangelist Dzamperi Domenico, who had gone over 7.4 million pounds (12 million) - a personal record of this artist.

Thus, in a segment of the art of old masters records change each other, but percentage of unsold works remains significant (40%at the auction by Sotheby's on December 9), indicating the desire of buyers to buy at high prices only to the real thing.

Charts:

1. The evolution of prices of works of art (base - $ 100 in July 1990)
2. Turnover at public auction of works of art (posemestrovye changes from 2000 to 2009.)
3. Percent naprodannyh works in 2009 (U.S. - UK - China - France - Italy - Germany - Switzerland - rest of world)
4. Turnover at public auction of works of art (contemporary art - 10,1%, post-war art - 16,2%, the old masters - 12,5%, XIX century - 13%, Modernist - 48,2 %
5. Public procurement - the ratio of Technology (left, bottom to top: turnover; painting - 62.57%, printmaking - 2,03%, a sculpture - 10,17%, picture - 1,55%, the figure - 22,06 %, Others - 0,83%. Right: Sold items)