Investors see the value of art and antiques rising, especially at the higher end of the market, report shows

Written by Ray Clancy

Thursday, 29 July 2010 08:33

The value of art and antiques continues to rise, driven by price increases at the higher end of the market, according to a new survey covering the second quarter of 2010.

The latest Royal Institution of Chartered Surveyors Art and Antiques Survey shows that 36% of surveyors reported lots in the highest bracket of £50,000 and above rise in price rather than fall, up from 18% in the previous quarter.

In the £5,000 to £50,000 category, 25% of surveyors also reported a rise, up from 18% in the first quarter of the year. However, at the lower end of the market, for items priced between £1,000 and £5,000, the net balance of surveyors reporting a rise in prices fell from 27% in the first three months of the year to 16% in the second quarter.

Despite continued uncertainly in the economy, sentiment in the art and antiques market appears buoyant, the report says. The All Lot price balance recorded its sixth positive reading, with 24% more surveyors reporting a rise in prices, rather than a fall, the highest reading since the survey began in 2008.

The picture for all sectors remains encouraging across the board, with ten of the 11 sub sectors in the survey reporting increases. Silver and jewellery remain the most popular sectors, rising in value in line with precious metal prices. Only ceramics recorded a negative balance, but at – 2, the fall was minimal.

The newly added category of watches showed greater strength in the lower price brackets, in contrast to the second quarter trend with 33% of surveyors reporting a rise, rather than a fall for lots between £1 and £1,000. In the £50,000 and above category, just 6% of surveyors reported a rise in prices.

Over the next 12 months valuers predict demand will outstrip supply, as buyers look to invest in alternative areas as a way of holding wealth against tax rises and inflation.

‘The results show buyers are placing a premium on the very best material often due to its relatively low availability. Recent aristocratic sales have highlighted this trend, revealing the investors who are willing to pay large sums for museum quality items. However it is worth remembering the broader mid portion of the market often presents a more mixed picture,’ said RICS spokesperson, Andrew Davies.

‘Given the uncertain economic future it’s of little surprise that buyers continue to invest in more traditional safe categories, such as precious metals and jewellery. However, we are noting a resurgent interest in oriental ceramics and works of art, particularly from middle and far eastern investors,’ he added.