News Item: 00092

9th Oct 2009

Arts and Antiques market shrugs off recession

Source: http://www.rics.org

Cheap money is continuing to drive up prices in the arts and antiques market, says the latest UK Arts & Antiques Survey from the Royal Institution of Chartered Surveyors (RICS).

The all lot net price balance has doubled in the last three months from +7% to +14%, indicating that an increasing number of chartered surveyors believe that prices of arts and antiques are rising rather than falling.

In fact, the latest responses demonstrate that prices are rising in 70% of the market, and that it is the top end of the market which has the strongest readings.

However, the contemporary art market is starting to look like the lame duck of the arts and antiques sector as more surveyors report that prices are falling.

The number of chartered surveyors reporting that prices are falling rather than rising in the contemporary arts market increased in the third quarter of this year to 34%, from 24% in Q2. As in previous quarters, prices fell across the board and show a marked contrast to the rises seen at the start of last year.

In contrast, the traditional 'safe havens' of jewellery and silverware had strong readings, with positive results in all price brands. 44% more surveyors felt that jewellery prices were still rising, and 37% more felt that silverware prices were on the up as well.

The oil and watercolour sector is still strong at the top end of the market, despite recording an overall net balance of -3%. 9% more surveyors believed that prices were rising in the market for pieces over £50,000, and 14% more agreed that those between £5,000 and £50,000 were still experiencing price rises rather than falls.

The arts and antiques market has held up well under the duress of the recession with many investors looking for a safety net for their savings.

Chris Ewbank, RICS spokesperson: "Cheap money, and downwards price adjustments in the last five years or so, is helping to drive up prices in nearly every part of the market. However, the contemporary market has suffered quite a turn around in fortunes over the last year, as those turning to the arts and antiques market are concentrating on the more stable and traditional markets, which tend to hold their value, or at least pose less risk. This is most visible in the fact that the international auction houses have suffered a significant decline in turnover over the past year, whilst the smaller provincial firms have seen an increase in activity."