Art in Asia is growing at unprecedented levels. Sales in Asia constituted 23 per cent of all global art dealings in 2017, and China, whose market has been growing for years, continues to remain on top. With even the IMF recognising the potential in the region, it is hard for there not to be a buzz around the opportunity for the expansion of not only art but all industries in this diverse region.
“The signs of growth in the region are encouraging so far. The policy challenge now is to strengthen and sustain this momentum,” said Changyong Rhee, Director of the IMF’s Asia and Pacific Department. This growth in fortunes is being enjoyed across the whole region, but particularly in China who’s rising middle class, which is expected to expand from 430 million today to 780 million in the mid-2020s.
Not only in China but the swelling numbers of middle & upper classes around Asia as well as the aspirational classes, especially those within the millennial age bracket has led to a seismic shift in who is purchasing art and how. Where once Art was largely bought and sold in the famous auction houses of Europe, the UK and the United States.
The markets across Asia are demanding more fine art from all price brackets and all types, more often and through the use of technology and traditional means, forcing the industry across the globe to move with it. Asia’s art market accounts for over 40.5% of global auctions house sales of all art, with China being considered the third largest consumer of art at 18 %! This shows that the market shift is real, it is growing and the art world as a whole has stood up and is taking notice.
Hong Kong stands out today as the Chinese capital of Contemporary Art generating 48% of China’s auction turnover, ahead of Beijing (37%) and Shanghai (8%). Meanwhile now accounting for $11.4billion a year or 18-20% – depending on which report is cited – China only a decade ago in 2007 accounted for just 9% of total sales – showing in finite terms how the Asian market is growing.
So, what does this growth mean?
As an art collector or investor in the region, as an artist or gallery, what this signifies is that works of high quality are in demand, are increasing in value and increasing in liquidity – all of which is a good thing.
In addition, it is clear that investment in art, is an investment in a growing industry, an opportunity and a clear way to diversify your asset portfolio and grow your bottom line. Through investment in art, there are many ways to profit, not only through the asset value of the art itself, but through innovative leasing programs to private and business enthusiasts that wish to have art on their walls, but prefer to lease rather than by.
For more information on the Asian art market, buying, selling or leasing works as an investment opportunity, please contact Art Works today for more information.