Top auction houses racing to expand in Hong Kong. Why?
Do you know how do international auction houses earn their fee? They earn a fee called premium fee which the buyer will pay on top of the successful auction price. This premium fee could be substantial. Searching online, I found an article in theartnewspaper.com
“As of 20 May, buyers at Sotheby’s will pay a 20% premium on any hammer price up to $6m, plus 10% on any portion of the hammer price above that amount. The company’s contentious 1% “overhead premium” will be scrapped.” Do read the full article of all the fees here: theartnewspaper.com
These international auction houses are feeling bullish with Hong Kong.
Article in nst.com.my. Three of the world’s top auction houses are racing to expand in Hong Kong, eager to woo young Asian buyers even as the global art market retreats from pandemic-era highs.
Sotheby’s on Thursday unveiled showrooms at an upscale mall in Hong Kong’s finance district, a two-storey space previously occupied by fashion label Giorgio Armani.
Nearby, Christie’s is gearing up for a September opening at a new skyscraper designed by Zaha Hadid Architects, with its total floor space doubling to 50,000 square feet.
Hong Kong’s biggest auctions of the year are held every spring and autumn at the city’s convention and exhibition centre – an intense four months that build hype and draw visitors.
Bonhams, which will move to a 19,000-square-foot location at a new office building in September, said it found success targeting transactions under HK$10 million (US$1.3 million). Do read the full article here: Article in nst.com.my.
My personal experience in property auctions
As a licensed auctioneer and also as someone who has worked in auction agencies before, I have been to many auctions. Many times, a grossly undervalued property may suddenly attract the attention of a few buyers who could be bidding furiously for the said property. In fact there has been numerous occasions where the bidding went to the market price of the said property. In other words, I have no idea why the bidder wants the property so badly that they bid until the market price because they could have bought the property from the market and could view the said unit… Well, that’s what happens in auctions.
Meanwhile, in the art market, it’s a playground for the super wealthy who may not even be present personally. As for the VALUE of the art piece or item, it’s mostly in the perspective of the bidder and it does not mean everyone would understand why the price could move to new heights. After the win, the winning bidder would also have to spend considerable sums in order to take care of item too. What an interesting world we live in right?
Happy expanding in Hong Kong!
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