RICS Fourth Quarter 2009 Arts and Antiques Survey

RICS recently released its 4th quarter Arts and Antiques Survey, and the news is good. The survey revealed that the overall index is up, with 7 out of 10 sub-sectors showing increases, including furniture and even contemporary art.  The three sub-sectors that did not show increases were clocks, books and ceramics.  The survey was led by large increases in silver and jewelery, due to the high scrap value.

I always look forward to the RICS quarterly surveys and print them out to save.  They are a great tool to use when writing a market analysis.  Keep in mind the survey is for the UK, but it still has application to other international markets.

The RICS summary to the survey states

The net balance of surveyors reporting rising rather than falling prices edged up further in the fourth quarter, with the All Lot price balance increasing from +14 to +17 (the highest reading since Q1 2009). The rebound in the arts and antiques market coincides with the rebound in other asset classes such as equities and property.

Out of the ten subsectors covered in the survey, only three did not a record a positive net balance during the latest three month period; clocks, ceramics and books. For the second consecutive quarter, all price ranges recorded positive readings, with price momentum at the bottom end playing catch-up.

For the first time since Q3 2008, the contemporary art subsector recorded a positive net balance of +6, possibly signalling an end to the sharp downturn that has taken place in the subsector. In the oil and water colour subsector, prices rose at the headline level, but were still falling at the bottom end of the market.

Silver and Jewellery remained the best performing subsectors with net balances of +50 and +37 respectively. Their strength is in part due to the increased scrappage value of precious metals during the fourth quarter.

In terms of the demand and supply outlooks for Q1 2010, confidence fell slightly in both cases but still remains conformably in positive territory.

To read the full RICS 4th Quarter Arts and Antiques Survey, click HERE.