European market: Artprice reviews the first half-year 2002

In 2001 the US outperformed Europe on the art market. Today, that balance of power has been reversed. European auction sales held up despite the uncertain economic climate in the first half of 2002. But US turnover was down by 26.4% on to the same period last year. Inevitably, the result has been a rise in Europe’s market share, from less than 50% in 2001 to over 58% today. The present climate is bound to have profound structural implications. And the second season opens with the art market looking distinctly changed from last year.

Transaction numbers are down across the board: -16% in Europe and -24% worldwide in the first season 2001. Despite this, Europe’s market leaders, France and the UK, have strengthened their positions, with both gaining market share.The sharp rise in price levels over the last six months has driven up turnover in France and the UK by 8.6% and 4.1% respectively. These gains have offset a fall in sales at other European markets and maintained total European turnover in fine art sales at the same level as in the first half 2001.

Second string markets (with less than 5% market share) performed generally worse than in 2001, although there was one notable exception. Switzerland’s turnover was up 25% on the previous year, confirming its fifth place in our art market rankings. Scandinavian art markets suffered a general decline. The Netherlands, Sweden and Denmark slipped further, undermined mainly by a steep fall in transaction volumes. In Denmark, the trend was exacerbated by a fall in the average hammer prices at fine art auctions. A similar tendency now seems to be under way in Germany and Belgium, where prices and buy-in rates are on the rise while average hammer prices have fallen, reflecting a decline in the quality of works auctioned.

The main European marketplaces at Fine Art Auctions between January and July, 2002   TURNOVER  LOTS SOLD  Market Shares Country Eur in Million Growth rate compared to jan-july 2001 Number of lots put on auction sale  Growth rate compared to jan-july 2001 In percentage United Kingdom 597,1 +04,1% 25 790 -26,2% 37,2% France 136,3 +08,6% 41 865 -03,6% 8,5% Germany 43,5 -12,9% 25 547 -07,9% 2,7% Italia 37,1 -15,4% 8 370 -15,1% 2,3% Switzerland 35,7 +25,6% 6 656 -17,2% 2,2% Netherlands 18,8 -17,0% 3 762 -44.4% 1,2% Sweden 13,9 -18,5% 3 379 -32,1% 0,9% Denmark 11 -20,8% 5 853 -9,7% 0,7%