Global Fine Art auction sales turnover: up 48.2%! [07/26/2006]

The 2006 spring/summer sales season has been one of the most dynamic ever recorded by Artprice. Compared to the first half of 2005, the global figure for total Fine Art sales revenue is showing the incredible growth rate of +48.2%. The figure is today 4 times what it was 10 years ago.

This progression in sales revenue has essentially been driven by a sharp escalation of prices. The Artprice Global Index is up 16.5% over twelve months (+86.8% over ten years). The United States is the most dynamic market with Fine Art prices having risen 32% since July 2005. Even France - more or less immune to the phenomenon between 2001 and 2005- is finally beginning to take off with inflation of +12.4% over the last year. All the Fine Art segments have experienced inflation to a greater or lesser extent. Over the last twelve months, the most dynamic segments have been Contemporary Art and Modern Art both showing average price increases of 19.9%.

At the same time, the number of million-dollar-plus hammer prices has risen sharply. 454 lots were sold for over USD 1 million during the first six months of 2006 sales compared with only 253 in 2005 and 130 in 2003!

This year the UK and the USA are neck and neck in the million-dollar sales race, with the two markets having each notched up 200 million-dollar-plus sales. As in 2003, New York has been the setting for the highest bid of the season generated once again by an important work by Pablo Picasso - a portrait of his muse Dora Maar - painted in 1941, and selling at Sotheby’s prestigious "Impressionist & Modern Art – evening sale" for USD 85 million. In London, the highest bid of the season was generated by a another modern artist; Modigliani's Jeanne Hébuterne au Chapeau sold for GBP 14.6 million at Sotheby’s London on 19 June 2006 in a session that generated a total sales revenue of no less than GBP 109 million (USD 202 million), setting a new record for an organised sale in London.

And Sotheby's is not alone in the field: Christie’s has hosted three exceptional sales above USD 30 million: USD 36 million for pour L’Arlesienne, Madame Ginoux (1890) by Vincent Van GOGH, USD 32 million for a splendid view of Venice by William TURNER and USD 31 millions for another important work by Pablo PICASSO painted in 1932. So far this year, the two major auction houses are more or less on an equal footing in terms of sales revenue. So far, Sotheby’s has generated just over one billion dollars in Fine Art sales revenue with Christie's less than USD 50 million behind, In the same month of last year, Christie’s was ahead with total sale revenue for the year of USD 695 million vs. USD 570 million for Sotheby’s. Over the full year, Christie’s generated a total of USD 1,372 million in Fine Art sales revenue.

Catalysed by the competition between the two houses, the Anglo-American market accounts for the bulk (76%) of global Fine Art sales revenue (40.7% for the USA and 35.4% for the UK). However, in the future they are likely to face increasing competition from China, Switzerland, Sweden and Canada.