RICS UK Arts and Antiques Survey Q1 2009

The Royal Institution of Chartered Surveyors, UK has just released its first quarter 2009 Art and Antiques Survey.

The news is very positive across all sectors of the UK marketplace including the middle markets. From the RICS website.

The arts and antiques market witnessed a dramatic turnaround during Q1 with the All Lot net price balance rebounding from –32 in Q4 to 19. This swing in Q1, moreover, was evident across all sectors of the market, although it was stronger in the lower price categories. Indeed, in the £1-£1000 tier the net balance jumped from –45 to 33, while in the £50,000+ tier, it moved less dramatically from –23 to 6.

According to surveyors, the key factors driving this rebound are:

1. extremely low interest
2. equity market weakness
3. sterling weakness

The first two factors are encouraging UK savers/investors to pursue alternative investment strategies given that yields on cash savings are now so low and that the stock market has fallen so dramatically.

The third factor is encouraging overseas interest in the domestic market, particularly from the US. Out of the ten sub-sectors covered in the survey, only two (clocks and contemporary art) did not see the net price balance move back into positive territory during Q1. However, even in these two areas the net price balance still improved (though far more convincingly in the former area than the latter).

It is notable that in contrast to the contemporary art sub-sector, the oil and watercolour subsector did witness a major turnaround. In the former area the price balance nudged up from –41 to -38 in Q1, where as in the latter area, it swung from -47 to 10. The best performing sub-sectors were jewellery followed by silverware. This is partly due to the perceived ‘safe-haven’ status of such items during times of financial and economic uncertainty.

In terms of the demand and supply outlook for the Q2 period, confidence rebounded strongly on the back of the much firmer performance seen in Q1.

To read and or print the full RICS quarterly report, click HERE. It is in PDF form and is nine pages.