Is this the new normal in the Australian auction room?

By David Hulme & Brigitte Banziger, on 31-May-2020

There has been much discussion recently about the pressure on art auction houses with the implementation of Covid19 restrictions to viewing of art. However, there appears to be no lack of buyers, but not only this, prices achieved are significantly above the highest estimates set by the auctioneers. This general trend started in early April and continues.

The above work by Sally Gabori, offered by Shapiro Auctions on 26th May [lot 19] was estimated at $8,000-12,000, and sold for $19,000 hammer price. The result is indicative of the recent trend in online only auctions, where prices achieved have been significantly above the high estimates set by the auctioneers.

Shapiro’s Auctioneers sold art from the historic homestead ‘Wollogorang’, Goulburn, on April 5th with a 114% sale by value, and Deutscher and Hackett held an uncharacteristic online auction on 21st April having postponed their major fine art sale, with an 85% sale rate by numbers and 104% by value.

On 24th May, Davidson Auctions sold 86% of all art lots offered and 124% sold by value in their Estate and Collector sale. Then on 26th May, Shapiro’s Auctioneers, in their sale from the estate of Jon Plapp and International prints sold 84% of the offering and with a very impressive 132% sold by value. Not to be outdone, McKenzies Auctioneers in Perth with a 66% sale rate by numbers, achieved a very healthy 122% by value.

Whilst this has certainly happened before, it is highly unusual to occur on a regular basis and may suggest auctioneers being more cautious with their estimates - which would hardly be surprising given the circumstances. Collectors however are not holding back.

It may also be that art is seen as a gentle and cathartic refuge in hard times and also perhaps a sign of the collectors' greater willingness and overall greater acceptance of the online model for the purchase of art.

It seems art auctioneers and art collectors alike have risen to the challenge with gusto. Whichever way you look at it, if this is the new normal for art at auction, it is very promising for the future of selling art in the secondary market.

The sale statistics quoted in this article are available here.

 

About The Author

Brigitte Banziger and David Hulme are the principals of Banziger Hulme Fine Art Consultants, established since 2003. With their combined experience of over 40 years, they provide private collectors as well as companies and public institutions with independent expert art valuations. In addition to their appraisals for insurance, family law, deceased estates and market values, they assist clients with transparent advice when buying or selling an individual artwork or an entire collection, for some of Australia’s most significant private collectors. David Hulme is an approved valuer for the Australian Government’s Cultural Gifts Program, and both Brigitte and David are members of the Art Consulting Association of Australia, where David served as President from 2015 to 2019. David Hulme is a regular art market critic and commentator on the Australian art market and has been interviewed by numerous media, including the 'Australian Financial Review', 'The Australian' and 'The Sydney Morning Herald'. He has also been interviewed on Network 10’s 'The Project', on the ABC’s Radio National Breakfast show with Hamish MacDonald, the ABC’s 'The Business' program amongst many others.

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