RICS First Quarter Arts and Antiques Market Survey

The first quarter RICS arts and antiques market survey was just released.  The news overall is rather positive with value rising.  The interesting aspect is that the 5,000 to 50,000 GBP value range was the best performing, and that is solidly in the middle market.  That is some of the best news I have heard for the middle market in a rather long time. 

Silver and jewelry has been driving much of the increases, but furniture was up only slightly, as too were books and some sectors of paintings and water colors.

The survey results shows the outlook for future prices is very optimistic, with demand expected to exceed supply, and if that is the case, we should continue to see price increases.

I hope to report the Appraiser Workshops Fine and Decorative Arts Market Confidence Survey results by early next week.  Thanks to all who completed the survey.

The RICS survey states

Prices continue to rise

* Prices continue to rise in Q1
* £5,000-£50,000 best performing category
* The best performing sub-sectors continue to
be Silvers and Jewellery; Oils & Watercolours
and Books are the worst performing

The Q1 2011 RICS Arts & Antiques Survey shows the market remains strong. Prices continue to rise with the All Lot price balance unchanged at +24 i.e. 24% more surveyors saw prices rising rather than falling. This is the ninth consecutive quarter of rising prices; anecdotal evidence suggests that low interest rates and high inflation is leading investors to view arts and antiques as an attractive alternative asset class.

The breakdown of the headline All Lot balance shows the lower end of the market improved significantly. Indeed, the price balance in the sub-£1000 category increased from +10 to +28 while the price balance in the £1000-£5000 category rose from +15 to +25. Arts & Antiques at the higher end of the market also recorded rising prices albeit at a slower pace than during the previous quarter, with the price balance in the £50,000+ category falling from +42 to +13.

All eleven sub-sectors showed positive balances. As expected, Silver and Jewellery continue to be the best performing sub sectors (with a balance of +64 and +46 respectively) due to the continuing high prices commanded by precious metals.

Respondents were asked to name the strongest performing sector in their opinion and the usual suspects, Silver and Jewellery, were the most cited, with some respondents recording price rises of up to 50% in the sector. Chinese art and ceramics was also frequently mentioned as a strong sector.

Looking forward, respondents are optimistic about the market in 2011, with sales expectations rising from +30 to +44 (6 quarter high) and demand expectations also rising from +27 to +51 (a series high). With demand expected to outstrip supply in the coming months, we expect to see further upward pressure on prices in 2011.

Click HERE to download the full RICS first quarter arts and antiques survey.