International auction houses are expanding their presence in Hong Kong and Asia - what does this mean for the future of the Asian art market?
Alex Branczik is as elated as he is exhausted. Sotheby’s Asia’s senior director and chairman, modern & contemporary art, has a lot to be pleased about. Following a buzzy, event-filled Art Week hailing the return of Art Basel Hong Kong and international visitors, Sotheby’s spring marquee sales, which took place in April, hauled in HK$3.71 billion, and set 21 new auction records. Although it wasn’t anywhere near the HK$10 billion the auction house made from its record 2021 sales, it was still considered a post-pandemic victory and a cause for celebration.
In fact, the pandemic seems to have had little negative effect on the art world or market. “The market was really robust in 2021 and 2022,” notes Yuki Terase, Sotheby’s former head of contemporary art, who now heads up art consultancy Art Intelligence Global. “I think the concern now is: when are we going to see the correction come? Because what usually happens is that the art world lags behind; when the financial market goes down, the art market is the last to go down and first one to come out [of recession].” Multiple auction houses saw record sales in 2021, which continued into 2022, and many record prices were achieved.
In April, UBS released its annual art market report; among its latest findings based on statistics from 2022 was that the market grew by 3 per cent, restoring it to its 2019, pre-pandemic value. In large part this was due to resumption of in-person events such as art fairs and auctions. Sales for the auction sector were down by 2 per cent compared to 2021, but still up by 11 per cent compared to 2019. While mainland China and Hong Kong experienced lower sales in 2022 due to pandemic restrictions, collectors from the mainland were out in full force during Hong Kong’s 2023 Art Month, making up for lost opportunities. But while things seem to be on the up and up, the market report did speculate that this recent boom will soon cool off.
Branczik, whose new role came amid a company-wide reshuffling of staff (including Terase’s departure) and new hires in 2021—including Nathan Drahi’s appointment as managing director—attributes Sotheby’s performance and expansion to the auction house’s past management. “We’ve had this storied 50-year history in Asia, and the team today is indebted to past leaders who have brought us to where we are today,” he says. “What we’re doing now is laying the foundation for the next 50 years and putting in place a team that can execute a new business model.”