RICS 4th Quarter Survey

The Royal Institution of Chartered Surveyors has releases its 4th quarter Arts and Antiques Market Survey. the results are positive, with the "All Lot" prices sector showing an increase in the 4th quarter (see image). The best performing sectors were silver and jewlery, with the worst being oil and water colors. Furniture was only slightly up, actually nearly a wash with a +2, contemporary art was up with a +8, but silver was up an average of +66. The report states that over the next 12 months supply will equal demand, resulting in little price increases.

It will be interesting to compare the results between the UK RICS survey and the recent AW Fine and Decorative Arts Market Confidence Survey (results will be published soon).

RICS reports in the survey summary

The Q4 2010 RICS Arts and Antiques Market Survey showed prices continued to rise. The All Lot price balance edged down from +26 to +24 but this still signals robust price increases i.e. 24% more respondents saw prices rise rather than fall compared to 26% in the previous quarter. Anecdotal evidence from survey respondents suggests that record low interest rates are pushing those with savings into alternative asset classes such as the arts and antiques market. The headline price balance has been in positive territory for 8 consecutive quarters.

The breakdown of the headline All Lot balance shows that price increases were strongest at the higher end of the market, with the price balance in the £50,000+ category rising from +20 to +42. Prices in the lower and middle end of the spectrum covered in the survey still recorded increases albeit at a slower pace. Indeed, in the £1 to £1,000 category, the net balance fell from +16 to +10, while in the £1,000 to £5,000 category, the net balance declined from +33 to +15.

Ten of the eleven sub-sectors showed a positive balance with only Oils and Water Colours recording a negative balance (–6). The best performing sub-sectors continue to be Silver and Jewellery, recording net balances of +66 and +63 respectively (the highest since the survey began in Q1 2008). The continued buoyancy of these two subsectors reflects the elevated underlying value of precious metals.

Respondents were asked to name the strongest performing areas. Chinese art and ceramics were heavily cited, with many surveyors also reporting high volumes of Chinese buyers in the market. As expected, the Silver and Jewellery sub-sectors were also seen as one of the strongest performers.

Looking forward over the next 12 months, respondents expect demand and supply to increase at roughly the same pace; the expected supply net balance edged down slightly from +36 to +30, while the expected demand net balance fell from +44 to +27. With both net balances at broadly the same level, the trend in prices is
likely to be flatter in 2011 than over the past twelve months.

To read and download the full RICS Arts and Antiques Market Survey and report, click HERE.