PHILLIPS LEADS HONG KONG SPRING AUCTIONS WITH $12.6M BASQUIAT SALE

Phillips' spring evening sale in Hong Kong highlighted Jean-Michel Basquiat's "Native Carrying Some Guns, Bibles, Amorites on Safari," which sold for HK$99 million ($12.6 million), the season's highest auction price in the city. The auction included only 24 lots, yet managed to achieve significant sales, including Banksy's "The Leopard and Lamb" at HK$36.8 million ($4.7 million). The sale saw a 22% increase from last season, with notable works by Zao Wou-Ki, Yoshitomo Nara, Yayoi Kusama, and Andy Warhol among the top sellers. Meanwhile, Christie's Asia Spring auctions generated HK$963 million ($124 million), a 22% decline from the previous year. Despite fewer high-value sales and increased unsold lots, Christie's achieved notable results with Andy Warhol's "Flowers" at HK$66.625 million ($8.5 million) and Zao Wou-Ki's "10.01.68" at HK$63.175 million ($8.13 million). Both auction houses showcased the dynamic and evolving art market in Hong Kong.
https://www.artnews.com/art-news/market/phillips-christies-spring-auctions-hong-kong-basquiat-painting-1234708731/

5 TAKEAWAYS FROM THE SPRING ART AUCTIONS

1. Christie’s Cyberattack Raises Concerns: Christie's faced a significant cybersecurity breach, attributed to a ransomware attack by RansomHub, compromising the personal information of its clients. Despite this, Christie’s managed to maintain buyer confidence, with evening sales reaching $528 million, within its estimated range. The full impact of the attack remains uncertain, pending further investigation.

2. Market Adjustments and Withdrawals: The withdrawal of Brice Marden’s high-value painting at Christie's underscored market caution. The spring sales, devoid of the usual blockbuster estate offerings, totalled $1.4 billion, a 22% drop from 2023. The auction houses had to work harder to secure financial guarantees, reflecting the market’s selective and cautious nature.

3. Third-Party Guarantees Dominate: The prevalence of third-party guarantees was evident, with a vast majority of guaranteed works backed by external investors. This risk-avoidance strategy, crucial in the current jittery market, ensured the sale of high-value pieces like Alberto Giacometti’s “Femme Leoni” and David Hockney’s wave painting.

4. Sotheby’s Steady Performance: Sotheby’s reported $633 million in sales, aligning with its expectations. CEO Charles Stewart highlighted the market’s selective nature and the importance of momentum. Despite fewer high-value sales, Sotheby’s maintained a respectable performance amid financial uncertainties and shrinking demand at higher price levels.

5. Mixed Results and Trends: While Phillips led with the highest sale of the season, a Basquiat painting for $12.6 million, the overall auction market showed signs of cooling, particularly for younger art stars. Notable sales included works by Zao Wou-Ki and Yayoi Kusama, though several high-profile lots failed to meet previous high prices, indicating a cautious and evolving market landscape.

https://www.nytimes.com/2024/05/19/arts/design/auction-christies-sothebys-phillips-results.html

GERMANY REDUCES VAT ON ART SALES TO 7% STARTING 2025

Germany will slash the value-added tax (VAT) on art sales from 19% to 7%, effective January 2025, addressing long-standing demands from art dealers who felt disadvantaged compared to their international counterparts. The reduction, approved by the cabinet as part of a broader tax law package, aims to support the art market and cultural contributions of galleries, according to Culture Minister Claudia Roth. The decision reverses the 2014 imposition of the higher VAT rate, which followed an EU directive excluding art from reduced rates. A new directive in 2022 allows for reduced VAT rates on art, enabling this change. The Bundesverband Deutscher Galerien und Kunsthändler (BVDG) praised the move, highlighting its potential to revitalize Germany’s art market, enhance competitiveness, and encourage the opening of new galleries.

https://www.theartnewspaper.com/2024/06/06/germany-cuts-vat-on-art-sales

ART BASEL LAUNCHES RETAIL SHOP CONCEPT, EXPANDS INTO LIFESTYLE SECTOR

Art Basel is venturing into the retail and lifestyle sector with the introduction of the Art Basel Shop, debuting during its Swiss fair next week. Curated by Sarah Andelman, founder of the Parisian concept store Colette, the shop will offer exclusive collectibles, clothing, design pieces, and published works. Opening to both fair visitors and the general public on June 11, the store aims to extend the Art Basel experience beyond the event. Hayler Romer, Art Basel’s chief growth officer, highlighted that the store aligns with the brand’s vision to engage audiences and provide additional value to galleries, artists, and cultural partners. Notable items include memorabilia under the AB by Art Basel brand, collaborations with artists like Christine Sun Kim, and unique products such as a wooden replica of Jean-Michel Basquiat’s Ferris Wheel and skateboard decks by Cindy Sherman. This initiative marks Art Basel’s strategic expansion into the art and luxury sectors, reflecting Romer’s expertise in luxury advertising and media.

https://www.artnews.com/art-news/news/art-basel-lifestyle-retail-shop-sarah-andelman-cindy-sherman-basquait-1234708915/