Caution reigns in Hong Kong 2024 spring art auctions, with US$12.2 million Yoshitomo Nara painting the top lot

Sotheby’s sells a painting by Japanese artist Nara for HK$96 million at its spring contemporary art sale, but total sales were down notably from last year
The number of lots offered there and at Poly Auction’s spring sale was down on 2023 too. While records were set for several artists’ work, the mood was cautious

Art

Cheung Hok-hang

Published: 2:07pm, 8 Apr 2024

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Following the modest success of Art Basel Hong Kong, tightly managed auctions in Hong Kong over the weekend saw collectors dig deep for works by some of the biggest names in art, even if the high number of withdrawn lots and conservative pricing indicate that a full rebound in the art market remains elusive.

The most-watched of the first round of spring art auctions – Christie’s will lead the next round in May – was Sotheby’s combined Modern & Contemporary and Now evening sales on April 5 at the Hong Kong Convention & Exhibition Centre, which a week earlier had been the venue for the Art Basel fair.

According to the auction house, the sales attracted bidders from 21 countries and regions, with strong participation from Greater China and North America.

Of the 52 lots offered for sale, 49 found buyers – a sell-through rate of 94 per cent – who paid a combined HK$673.4 million (US$86 million). Six works were withdrawn from the Modern & Contemporary section of the sale and two from the Now section before the auction.

As was the case at Sotheby’s April 2023 evening sale, the highest price was fetched by a painting by Japanese artist Yoshitomo Nara. His I Want to See the Bright Lights Tonight (2017) was sold to a phone bidder through a senior director at Sotheby’s London at a hammer price of HK$81 million, just above the lowest presale estimate of HK$80 million; including commission, the buyer paid HK$96 million (US$12.26 million).

Pablo Picasso’s Le Peintre (1963), heavily promoted before the auction, was sold at a hammer price of HK$66 million, equalling the lowest presale estimate. The lot was guaranteed by an irrevocable bid. Including commission, the auction price was HK$78.7 million.

Pablo Picasso’s Le Peintre (1963) was sold for HK$78.7 million (including commission) during Sotheby’s Modern & Contemporary Evening Auction on April 5, 2024. Photo: courtesy of Sotheby’s

Market weakness was also evident in the sale of Zao Wou-Ki’s expressive painting 04.10.85 (1985), the highest priced work by a Chinese artist in the sale. Its sale at a hammer price of HK$33 million (HK$40.4 million with fees) fell short of the low presale estimate of HK$35 million.

Despite the generally cautious mood, record prices were set for the works of several artists. Notably, a work by Cuban artist Wifredo Lam, Fruits tropicaux (1969), sold for HK$11.3 million including fees; a solo retrospective of Lam’s work continues at the Asia Society Hong Kong Center in Admiralty.

As data from research firm ArtTactic shows, global sales of artworks produced after 2000 fell 17 per cent in 2023 from a year earlier, but this market segment remains more resilient than that for older artworks, which fell 22 per cent in the same period.

Mask Series 1999 no. 1, by Zeng Fanzhi, sold for HK$12.2 million including commission at the Sotheby’s evening sale in Hong Kong. Photo: courtesy of Sotheby’s

The top result in the Now section was achieved by George Condo’s Green Eyed Lady (2016), which sold for HK$13.5 million and was also backed by an irrevocable bid.

This was followed by Rashid Johnson’s The Crowd (2017), which fetched HK$7.8 million, and Lucy Bull’s Radiator (2019), sold for HK$5.7 million. Works by Nicolas Party and Kaws failed to sell.

Although the majority of lots sold achieved prices squarely in the middle of their estimates, total sales were only 61 per cent of the HK$1.1 billion tally for Sotheby’s modern and contemporary art evening sales in April 2023.

Claude Monet’s Route de Monte-Carlo (1883) sold for HK$61.5 million, including commission, at the Sotheby’s sale. Photo: courtesy of Sotheby’s)

Richard Zhang Teng, an art economist in Shanghai, says the early spring sale results this year suggest there is cautious optimism in the market.

“Compared to last year’s 50th anniversary sales in Hong Kong, which were jam-packed with a wider selection of works and more blue-chip names, this year’s auction reflects a more conservative approach from both buyers and the auction house. But with Sotheby’s lower commission fees, the results were quite positive given the market conditions,” says Zhang.

The number of works offered for sale in Poly Auction Hong Kong’s Modern and Contemporary sale on April 7 was also lower than last year. The auction, focused on Chinese and East Asian artists, featured 60 pieces compared to 95 in 2023. The star lot, Yayoi Kusama’s Red Pumpkin (1989), exceeded expectations by selling for HK$18 million, double its low estimate.

Zhang, founder of research firm Economics on Art Market, says the market is unlikely to recover in the near future, citing the International Monetary Fund’s February prediction of a potential 30-60 per cent decline in China’s real estate investment compared to 2022 levels.

“The art market is a very passive market. It can’t simply improve through self-adjustment; it’s always subject to the volatility of the broader macroeconomic situation,” he says.

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