Damien Hirst sale signals peak of art market

Tuesday, 07 October 2008 07:59

Damian Hirst's recent £111 million sale of works will mark the peak of the arts market, according to new analysis.
 
The UK Arts and Antiques survey, published by the Royal Institution of Chartered Surveyors (Rics), found the property slowdown is now hitting the arts and antique market.
 
For art and antiques worth over £50,000 the sector remains strong, however, with 39 per cent more surveyors reporting a rise in lot prices than a fall.
 
However, below the £5,000 threshold the market is stalling.
 
Rics finds as financial gloom stalks the housing and stock markets, the super rich are never far from high-priced quality pieces, with cash rich Middle Eastern, Russian, and Asian buyers on the lookout for traditional native items and contemporary art. 
 
Demand for silver and jewellery also remains strong, but the market for furniture, oils and water-colour paintings, ceramics, and clock remains stagnant.
 
Rics spokesman Andrew Davies said: "Against a backdrop of turbulent financial markets, the higher end art & antiques market has continued to perform well. 
 
"Investors are now becoming more selective in their purchases and this is likely to carry on as the super rich continue to use the industry as an alternative investment vehicle."
 
However, he warned of price falls in the contemporary art sector, due to recent "rocketing" prices.
 
"Other 'traditional' areas of collecting, such as antique furniture, are slightly undervalued as people shy away from purchases during the housing market downturn," Mr Davies said.
 
"However, we do not expect this to last for long as savvy investors are never far from potential bargains."

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