Tag Archives: mainland

Hong Kong Apartment Is World’s Most Expensive

Five-Bedroom Luxury Duplex In City’s Mid-Levels Area Sells for US $57 Million

The world's most expensive apartment was recently sold in this building for 57 million US dollars

The world's most expensive apartment was recently sold in this building for 57 million US dollars

We’ve written before about the Hong Kong real estate market’s relatively fast rebound in the face of the global economic downturn, with exclusive properties like The Masterpiece attracting the attention of well-heeled mainlanders and Hong Kong residents alike. This week, an apartment in Hong Kong’s Mid-Levels area sold for a record-breaking HK$439 million,  or around US$57 million, and analysts expect a continued flow of money into the city’s luxury real estate markets as cash-rich individuals look to take advantage of the Hong Kong government’s recently lowered interest rates and the city’s appeal as an investment  haven.

Today, the AFP writes on the recently sold duplex, noting that the massive flood of mainland money coming into the market is exciting developers but worrying some economists who think this year’s 40% leap in the luxury property sector portends that a property bubble could be forming:

“You may see some more record-breaking prices in the luxury segment,” said Buggle Lau, chief analyst for Midland Realty.

“We have all the ingredients for a bubble coming up… With low interest rates and ample liquidity people are inclined to put their money into real estate.”

Demand from mainland Chinese investors looking to diversify their new-found wealth and snap up trophy property assets was also likely to buoy the market, said Savills’ head of research Simon Smith.

“There is quite a lot of momentum out there. If you look ahead there’s a chronic undersupply of residential units for luxury and the mass market,” he added.

Hong Kong Now World’s #1 Wine Auction Market, Surpassing London & New York

Sotheby’s Fine Wine Auctions Sell $8 Million Over The Weekend As Chinese Collectors Dominate In Hong Kong

Hong Kong is now the world's top wine auction market, having surpassed London and New York

Hong Kong is now the world's top wine auction market, having surpassed London and New York

This weekend, Sotheby’s began a five-day string of auctions in Hong Kong — continuing until October 8 — with auctions of fine wine from the cellars of two anonymous American collectors. Though one of the world’s newest hubs for wine, due to a combination of ending wine duties, encouraging mainland buyers to take part in wine auctions, and growing demand both in Hong Kong and in mainland China, Hong Kong has within a few short years become the world’s #1 auction market for wine, overtaking traditional leaders London and New York. From James Pomfret in Reuters:

“Asian buyers represented 99 percent of buyers in this two-day sale,” said the head of Sotheby’s international wine department Serena Sutcliffe. “Hong Kong has become Sotheby’s most important wine center, ahead of very successful auctions in New York and London,” she added in a statement.

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Art Market Confidence Index Shows 75% Of HK Auction Respondents In The Mood To Buy

As Hong Kong “Stirs From Slumber” And Buyer Confidence Remains High In China, What Can We Expect To See Next Week?

Zeng Fanzhi is one of the historical Chinese contemporary artists up for auction in Hong Kong next week

Zeng Fanzhi is one of the historical Chinese contemporary artists up for auction in Hong Kong next week

We’ve been interested in the upcoming Hong Kong Sotheby’s auctions of Contemporary Chinese, Southeast Asian and other Asian art, with a particularly obvious fixation on the Chinese side, for some time. After the surprising turnout of mainland Chinese, and their willingness to go far above and beyond lot estimates to take home something they’ve set their hearts on, Sotheby’s is likely expecting a good proportion of bidders both from the mainland and other areas of Greater China — definitely Hong Kong, since buyers from that market have been something of a fixture at Chinese art auctions for ages. And while the unpredictable nature of art auctions makes it difficult to forecast how next week’s auctions turn out (although total revenue estimates for all of the Hong Kong auctions are close to US$100 million), many people are excited and motivated to buy some high-quality, historical art.

One thing that makes the auction of contemporary Chinese art even more interesting to me on a personal level is the way it will coincide with “Golden Week,” a week of celebrations coinciding with both Chinese National Day and the Mid-Autumn Festival. If last year’s turnout was any indication, Golden Week could draw well over a million mainlanders to Hong Kong this year, most of whom are coming to the city either to shop for expensive objects or eat and drink for days. While Golden Week, on its own, really shouldn’t affect the Sotheby’s sale too much, it is within the realm of possibility that some of the shopping-mad mainlanders might be shipping a Yue Minjun or Liu Ye painting home along with their boxes of luxury goods.

Another reason I’m excited about the Hong Kong sales next week is because of this article, published today by Art Market Insight, which is bullish on the article because of the comparatively fast re-emergence of Hong Kong following the global economic crisis:

Once again, Sotheby’s is weighting its sale in favour of the Contemporary segment (Contemporary Asian Art) which carries the richest of the three catalogues with 190 lots and a total revenue estimate of $12.5m. In order to re-kindle interest amongst its biggest clients, the auctioneer has built a catalogue of very attractive signatures. Among the star lots: a powder drawing by CAI Guoqiang , Money net NO.2, estimated at HKD 4.7m – 5.5m, ($606,000 – $710,000), several paintings by YUE Minjun , including Hats series – The lovers expected to generate around $400,000 (estimated HKD 2.8m – 3.5m), three paintings from the famous Chinese Portrait series by FENG Zhengjie including a superb contemporary Amazon (4 x 3 metres) estimated at $100,000 – $130,000 (HKD 800,000 – 1m). A very similar monumental portrait fetched $133,000 in June 2009 (Phillips de Pury & Company, London, £81,000).

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Sotheby’s Autumn Auction 2009: Top 10 Lots To Watch

Strong interest from Asian buyers expected to spark October sale in HK

As we reported recently, the Sotheby’s autumn auction of Asian art which highlights important contemporary Chinese pieces — will take place in Hong Kong on October 6. With combined estimates at over $12 Million US (HK $98 Million), this sale is expected to be one of the year’s biggest and most-watched auctions. As we have noticed in recent sales — both in Hong Kong and elsewhere — one thing we can expect in this auction is a high proportion of domestic Chinese buyers in the room, and we can expect them to be motivated to buy. Today, in preparation for the upcoming auction season, Forbes published an article on the market for Chinese art, noting that it is becoming gradually more difficult for western collectors to buy a range of Chinese art because of the growing collector base within the country. Describing the increasing numbers of Chinese bidders at antiquities auctions, Sallie Brady writes, “there’s a new dynamic afoot that promises to drive up prices: Mainland Chinese are entering the market in ever greater numbers.”

So for collectors who are interested in making bids on lots in the upcoming Sotheby’s auction, what should they know before they go head-to-head with Chinese buyers? Aside from doing their research to stay up-to-date on recent developments and informed about the past work and possible future longevity of the historical artworks that are up for grabs, it pays to know which lots are the “all stars.” I have looked through the catalog, and here is my list of the “Top 10” lots up for auction on October 6:

1.) Cai Guo-Qiang: Money Net No. 2 (2002)
Lot: 645
Estimate: US$ 605,000-705,000 (HK$ 4,700,000-5,500,000)

MoneyNet.jpg Cai Guo-Qiang (born 1957, Quanzhou, Fujian Province) was educated in stage design at the Shanghai Drama Institute from 1981 to 1985. Gunpowder is his trademark medium, from drawings and paintings made by igniting carefully monitored explosions on paper and canvas to massive explosion events like Projects for Extraterrestrials. He is also known for sculptural installation works such as Borrowing Your Enemy’s Arrows (1998), a massive wooden boat riddled with arrows that recalls a legendary tactic of an ancient Chinese general. Cai has had many solo exhibitions, including Cai Guo-Qiang on the Roof: Transparent Monument at the Metropolitan Museum of Art (2006) and Cai Guo-Qiang: I Want to Believe at the Guggenheim Museum in New York (2008). He was awarded the International Golden Lion prize at the 48th Venice Biennale (1999), and curated the first China Pavilion at the 51st Venice Biennale (2005). He was the Chief Special Effects Designer for the 2008 Beijing Olympics’ creative team. Cai lives in Brooklyn.
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Ullens Successfully Sells $22.2 Million Worth Of Chinese Art In Beijing

Chinese Buyers Buy 18 Works From Collector, Founder Of Beijing’s Largest Private Art Museum, Who Holds One Of the World’s Largest Active Collections Of Chinese Artwork

The Ullens Center, in Beijing, houses one of the world's top collections of Chinese art

The Ullens Center, in Beijing, houses one of the world's top collections of Chinese art

Big news coming out of the Chinese art world today. Bloomberg reports that Guy Ullens, the Belgian industrialist and collector of Chinese art since the mid-1980s, has sold 18 works from his collection for over $20 million (151.7 yuan). Ullens, whose collection is made up of hundreds of pieces spanning centuries of China’s long artistic history, put these works, many of them duplicates or triplicates, up for auction to add to efforts by his popular Beijing museum of contemporary Chinese art to reach out to China’s burgeoning collector base and art enthusiasts.

According to Bloomberg, the huge returns on Ullens’s sale indicates two important developments in the Chinese art world — for one, the quality of the Ullens collection, and two, the motivation of Mainland Chinese collectors to buy Chinese art now. While the Ullens collection has long been considered one of the top collections of traditional and contemporary Chinese art, until recently the local Chinese collector base has stayed out of the picture, mainly sticking to purchasing the occasional western master or ancient Chinese antique. Now, however, as the Chinese New Collector becomes increasingly influential in art auctions around the world, sales like that of Ullens’s artwork are, as we’ve seen in the last year or so, becoming more heavily populated by Mainland buyers.

Bloomberg points out that the success of this sale reflects the trend that we have been observing since before the global downturn struck, of Chinese buyers (and Chinese auction houses) growing in number and influence. This extends not only to the sale of Ullens’s artwork, but to every corner of the auction market, from contemporary and traditiional Chinese art to wines and jewelry. As the article points out as well, the breadth of Ullens’s sale — which included contemporary artists like Zhang Xiaogang, who sold for 15 million yuan to a Chinese buyer — shows that the Chinese collector has truly arrived.

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Chinese High-End Consumers Reluctant To “Trade Down”

Those With A Taste For Luxury Goods In Emerging Markets Less Willing To Cut Back, HK Study Finds

While China has not remained unscathed by the global economic crisis, its luxury consumer market shows resilience in consumer confidence and willingness to shell out

While China has not remained unscathed by the global economic crisis, its luxury consumer market shows resilience in consumer confidence and willingness to shell out

One of the more surprising features of the global economic downturn, to some commentators, has been the relative health of the Asian consumer market throughout the crisis. Although developed markets like Japan and Korea have certainly been hit hard — as their high-tech and automotive export markets have declined substantially — emerging markets like Greater China and, to a lesser extent, India, where income gaps are still quite large and wealthy consumers have developed a taste for luxury goods are doing comparatively well.

This is not to say China hasn’t been hit by the slowdown — it has, as low-tech manufacturers and mass producers have, in many parts of the country, been forced to shut down or lay off thousands of workers. However, we are seeing that the specific class of Chinese luxury consumer is continuing to spend through the global recession, perhaps as a sort of badge of wealth, perhaps because these consumers just want to keep buying. There are plenty of theories why Chinese luxury consumers, unlike those in Japan and North America, aren’t waiting to buy their next handbag or car — however, one Hong Kong study in particular caught my eye:

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Hong Kong Solidifies Its Place In The Global Art World

Runaway Success Of HK 09 Proves That The Chinese Dragon Has Woken Up To Contemporary Art

Contemporary Chinese artists Jian'an Shi's pieces were some of the highlights of the HK 09 Art Festival

Contemporary Chinese artist Jian'an Shi's pieces were some of the highlights of the HK 09 Art Festival

Joyce Lau writes today in the New York Times that the HK 09 International Art Festival, which took place over the weekend, illustrated better than most art fairs the vibrant arts culture that exists in Hong Kong. The fair, writes Lau, indicates what many Hong Kong watchers have always known, that the city is a magnet for the arts, luxury goods, business, media, and cuisine. With this unique mix of cultures both traditional and transitional, Hong Kong is vying to be the 21st century equivalent of Tokyo in the 1960s or New York or London before that.

For all attendees, the HK 09 Festival illustrated what Lau calls the city’s “quest to become a global hub for luxury goods.” With its proximity to the Mainland, and the increasing ease of travel for Mainland Chinese to Hong Kong (along with the perennial ease for their Hong Kong counterparts), the blending of Hong Kong’s kinetic cultural melting pot with the Mainland’s ever-changing spirit makes this region a must-see for anyone interested in Asia’s unique, exciting energy.

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