A world auction record price for Ming blue and white porcelain such as this 'dragon' brushwasher of the Yongle period (1403-1425)
Pola Antebi of Christie's says art is becoming a popular investment vehicle
Henry Howard-Sneyd of Sotheby’s says Hong Kong’s strong cultural heritage is fundamental to auction success

Spectacular totals were achieved at recent Hong Kong art sales held by auction houses Christie's and Sotheby's, and both say the trend is set to continue.

At Christie's spring sales in late April, an unprecedented HK$436.6 million (US$56 million) was achieved, breaking numerous world auction records for individual items. In a flurry of bidding, buyers from around the world competed vigorously on the telephone and in the saleroom over two days. Christie's said the rarity and dearth of the great works on offer pushed the prices for antique and modern art alike to new heights, with many lots well above their pre-sale estimates. 

Sotheby's is also enjoying its strongest year ever in Hong Kong. Its three-day spring auction of Chinese ceramics and works of art, Chinese paintings, jewellery and watches in April fetched an impressive total of HK$445.6 million (US$52 million), with 10 new auction records established. This represents a 28 per cent increase over Sotheby's autumn sales in 2003. Sotheby's says international competition was "fierce" for the prized pieces, and noted strong participation from mainland Chinese collectors.

Market potential 'enormous'

Pola Antebi, director of Christie's Chinese ceramics and art department, describes as "enormous" the growth potential in Hong Kong, which has always been the centre of Christie's Asian market.

One of the reasons driving this growth is that more people are seeing art as an investment, Ms Antebi said. In view of low interest rates, falling real estate prices and the volatility of the stock market, art is an investment vehicle that is both tangible and portable.

More buyers are also collecting for pleasure, she said, with high prices adding to Hong Kong's international profile. "As prices have gone up, we have been able to bring to auction some very important pieces. Collectors from many countries have come out to those sales and have been active in the bidding process."

Christie's has been holding sales in Hong Kong since 1986, Ms Antebi added. "Hong Kong is a free port, with no sales tax," she said. "It is easy to do business here, so it makes sense to hold auctions in Hong Kong.

"Logistically, Hong Kong is a hub, so it works well for people to come here. Hong Kong will continue to be Christie's Asian art centre. Other countries have restrictions on importing and exporting art, as well as tax issues, so it makes sense for us to stay here."

Mainland collectors fuel growth

Another factor driving the growth of Hong Kong's art market is the emergence of increasingly affluent buyers and sellers from the Chinese mainland.

Henry Howard-Sneyd, Sotheby's managing director for China, Southeast Asia, said Hong Kong is ideally placed in the region as a centre for trading art. "Geographically, Hong Kong is absolutely central to Asia," he said. "It has a very strong rule of law and a tax system that is simple and easy to work with. As a venue, Hong Kong has everything you could possibly need to run a professional auction business.

"Hong Kong also has a very strong culture and history of collecting art, and this is one of the fundamentals to auction success - you need a home team that will drive and support a market."

The market has been going from strength to strength, particularly in the past two years, Mr Howard-Sneyd noted. Buyers have been emerging from the mainland, Indonesia, Taiwan and around the world, collecting not only Chinese art but also jewellery, watches and ceramics.

"Hong Kong leads the world in Chinese art because of this great strength of buyers," he continued. It is one of the best markets for sourcing and one of the three major pillars of the international jewellery market (alongside New York and Geneva).

Mr Howard-Sneyd added that, more and more, Hong Kong is also a major international platform for contemporary works.

"Sotheby's will this autumn be holding its first auction dedicated solely to contemporary and Western influenced Chinese paintings and sculpture. This is a recognition that the market has matured sufficiently to support a major international auction."

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