The art market is thriving – or is it? Since the pandemic struck, every quarterly report either promises hopes of an improving art market or woes of a downward spiral. In truth, the first half of 2024 was a mixed bag. Major players like Sotheby’s and Christie’s kept it steady, but paled in comparison to the previous years. Let’s look at how the major auction houses – and the art market in general – have fared in this year so far.
Global Art Market
At the end of 2023, Christie’s and Sotheby’s made a combined total of $14.2 billion from sales. This was a 13 percent decrease from 2022, where they made 16.4 billion. An Art Basel report in March further revealed that global art sales decreased by 4 percent to 65 billion in 2023. Art auctions also became less festive events, as the trend of online auctions that began during the pandemic has only continued and has become a permanent feature. Latest reports suggest that $6 billion or 18% of total sales happened online.
The first quarter of 2024 went relatively quiet, as no major auctions took place. However, May turned out to be a major period as most auction houses held their Spring auctions this month. The numbers did not suggest a surprising comeback but rather a steady hand. The United States continues to dominate the global art market, but its share has continued to decline while the likes of Hong Kong and Seoul have emerged as new hotspots for blue-chip art. China also saw a 9% increase in sales in the first half of 2024, reaching about $10.8 billion.
Christie’s
The auction house did not see much action in January. However, February began with an eye-catching sale of a Beatles painting, signed by all four members, which sold for $1.7 million. Nor were the Beatles the only musicians getting the limelight. The same month saw an Elton John auction selling various items associated with the music artist; the auction raked in a total of $8 million.
In April, the auction house partnered with Art Money, a fintech firm, to make payments by its buyers more seamless. The same month, in a relatively small auction, Christie’s sold a written text by Michaelangelo, along with a letter by his last direct descendant. The scribble managed to fetch more than $200,000 – far more than its low estimate of $80,000.
As the anticipated auction week came closer in May, Christie’s found itself in hot soup; its website went unexpectedly down for days. It was later revealed to be a cyberattack, with the hacker group RansomHub extorting money from the auction house. The website remained down for 10 days, finally going back live on May 20. However, the auction house was hit with a class-action lawsuit against the client data stolen in the attacks.
Nonetheless, the auction week started with its 21st Century Art sale raking in a total of $114 million, including a Basquiat work selling for $32 million. The 20th-century evening auction proved to be a much livelier affair, bringing in an impressive total of $413 million (though within its pre-sale estimates). The auction was accentuated with star sales like a $33 million Van Gogh painting and a $28.6 million Hockney work. The report card of the Auctions week came in July when it was reported that the numbers fell 22 percent compared to last year. The same month, Christie’s London sold a Titian painting for a record $22.1 million.
Sotheby’s
Sotheby’s started its year on a rather sour note. A Diego Velázquez portrait of Spanish Queen Isabella, worth $35 million at the time and expected to fetch more, was pulled from an auction. The auction house also found itself embroiled in a legal battle with Russian tycoon Dmitry Rybolovlev.
By February, however, Sotheby’s started to turn around. It began with a fee restructuring, allowing for lower buyer premiums and a more consistent fee. In March, the auction house saw its first major auction: the Contemporary Art Sale in London. The auction fetched $126 million (with fees) – pretty much within the estimate. The tame performance only had one moment of excitement when Picasso’s Homme à la pipe (1968) sold for $17.4 million.
May arrived with the marquee auctions week in New York. The first two auctions brought in a combined $267 million – right within the pre-sale estimates. A Francis Bacon work, supposed to be the highlight of the auctions, failed to impress and was sold for $27 million, almost half of its high estimate. On the other hand, a surrealist painting by Leonora Carrington sold for $28.5 million, setting a new record for the artist. The subsequent Modern Art evening sale performed better and yielded $235 million. A Monet work was the star of the show, bringing $38.4 million to the table.
But outside the glamor of the auctions, Sotheby’s faced new troubles. Its UK branch announced dozens of layoffs, while the ratings firm S&P downgraded Sotheby’s ratings to a B-. Some good news came in the form of the Harry Potter auction in July, which saw the original cover art of the first book being sold for a record-smashing $1.9 million.
Final Words
Philips, the third largest auction house in the world, did not have a spectacular year like its peers. The first major auction came in May when its Spring auctions kicked off in Hong Kong. A Basquiat painting was the star of its show, selling for $12.6 million. It also had a Banksy work being sold for $4.7 million.
The art market is undergoing major changes – changes that began in 2020 but are still not done. While some still cling to the hopes of returning to the pre-pandemic status quo, most have made peace with the new landscape. And in this new landscape, it might be a while before we see record-shattering sales that shake the whole auction block. In the meantime, the hammer falls slowly but steadily.
