Resilience and Transformation: Navigating the Dynamics of the 2023 Australian Art Auction Market
- Robert Buratti
- Dec 7, 2023
- 2 min read
The Australian art auction market in 2023 demonstrated resilience amid challenging economic conditions, including inflation, high interest rates, and global conflicts. Despite these challenges, total sales are expected to reach $140 million by the conclusion of the upcoming week, a figure nearly commensurate with the previous year's total of $143.93 million. Notably, the art market experienced an atypical surge in 2022, driven by the sale of works from the collections of Cbus super fund and National Australia Bank, totaling over $20 million. However, this falls short of the pre-Global Financial Crisis (GFC) record in 2007, when the market witnessed a robust $176 million in art transactions.
In the competitive landscape of Australian auction houses, the tides have shifted in 2023. Smith & Singer has emerged as the leader with total sales amounting to $42.03 million, surpassing Deutscher and Hackett, which secured $34.12 million (excluding the pending December 12 auction). The reversal of positions reflects a year-long competition between the two major houses vying for the opportunity to sell premier works from esteemed consignors. While high-end buyers seem unaffected by rising interest rates, everyday investors, colloquially referred to as "mum and dad" investors, are gradually withdrawing from the art market.
During the COVID-19 pandemic, smaller buyers flocked to the art market, seeking to invest amounts ranging from $5000 to $10,000, driven by reduced international travel opportunities. However, this trend is subsiding, and the market is now witnessing a shift towards dedicated art enthusiasts, commonly known as "connoisseurs," who remain interested in rare and high-quality works by distinguished artists, regardless of economic uncertainties. Observers suggest that a softening of prices in the lower market segment may lead to a decrease in works priced under $50,000 entering the market, as vendors express concerns about achieving favorable valuations.
Insights gathered from various market insiders and auction houses, including data from the Australian Art Sales Digest website, offer a comprehensive view of the market dynamics. Top sales in 2023 include John Peter Russell's "Souvenir de Belle-Île" at $4 million, Brett Whiteley's "Yellow" at $3.25 million, and Fred Williams' "Masons Falls" at the same amount. Notably, the list of top prices lacks female artists, but Emily Kam Kngwarray ranks eighth in terms of trade volume, surpassing prominent figures such as Russell Drysdale and John Brack.
Emily Kam Kngwarray achieved total sales of $2.98 million during the year, outperforming several established artists. Notable records were set for Del Kathryn Barton, Joel Elenberg, Criss Canning, and Carol Jerrems, reflecting the dynamic nature of the Australian art market. However, challenges were observed at the lower end of the market, with a decline in works priced around $5000.
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