Written by: Tang Kai Xian

The three largest art markets, in descending order, US, UK, China, accounted for 80% of global art sales in 2022. By 2025, HSBC estimates that wealth in Asia, excluding Japan, could outstrip the US. This development, coupled with Singapore's burgeoning arts scene, raises the question of whether the influx of Asian wealth could catapult the Little Red Dot towards its goal of becoming a global arts hub. One measure of the strength of the arts market is the success of prominent art fairs hailing from the top three art markets.

United States (US)

The US is home to the largest base of High-Net-Worth (HNW) and Ultra-High-Net-Worth (UHNW) individuals in the world. Fueled by an appreciation of art amidst a vibrant cultural scene, the US art market has continually maintained its status as a dominant global player in the art market for over two decades. A key growth driver has been the imports of art and antiques, which increased by 23% in 2022 to reach US$10.3 billion.

One of USA’s top art fairs is The Armory Show, New York. The roots of the now prestigious event can be traced back to the now defunct Gramercy Park Hotel. Its inaugural edition in 1994 featured a modest 40 exhibitors, each showcasing their works in an unfancy hotel room. The fair’s debut was met with immediate success. In fact, the overwhelming popularity of the event caused some patrons to climb ten flights of stairs, as the elevators struggled to manage the sheer volume of visitors, as recounted by Matthew Marks, one of the fair's co-founders.

Its most recent edition, which took place in September 2022, was focused on Latinx and Latin American Art. In lieu of the notable absence of prominent galleries such as Hauser & Wirth, Gagosian, and Pace, smaller dealers were given room to shine. There were 247 exhibitors, up from 157 in 2021. Visitorship reached 42,000 too. Anat Ebgi sold out its booth on VIP Day, attesting to the strong sales enjoyed at the fair. 

United Kingdom (UK)

In the face of political and economic upheavals, the UK art market sales increased 5% to reach US$11.9 billion in sales. Despite the positive sales growth, total value of the UK art market still falls short of its 2013 numbers by 7%. Although it has been three years since Brexit, the art market continues to grapple with the repercussions of the decision. Prior to Brexit, the UK art market enjoyed the benefits of a plethora of free trade agreements that facilitated the smooth flow of goods, particularly within the European Union. Now the post-Brexit art market in the UK has been dealt with additional regulatory, economic, and bureaucratic hurdles, including more complicated paperwork and import costs. The cancellations of the 2023 editions of Masterpiece London and Art & Antiques Fair Olympia are victims of this prolonged turmoil.

Despite the setbacks faced by the UK art market, Frieze 2023 is planned to go ahead. Frieze was founded in 1991 by Amanda Sharp, Matthew Slotover and Tom Gidley with the launch of Frieze magazine, a magazine exploring contemporary art and culture. Capitalising on the success of Frieze Magazine, Sharp and Slotover pioneered the Frieze art fair in 2003. The annual event, which takes place in October at The Regent's Park, has become a mainstay of the UK art scene.

Today, Frieze art fair comprises Frieze London, featuring post-war and contemporary art, while Frieze Masters tends to focus on works by old masters and antiques. Last year, more than 160 exhibitors participated in Frieze London while more than 120 exhibitors participated in Frieze Masters. On preview day, Johnny Van Haeften sold a rare Jan Brueghel the Elder work for approximately US$10 million. Gagosian’s presentation of Jadé Fadojutimi's new paintings was also a hit and sold out during the early hours of the fair. The combined visitorship to both fairs was estimated at around 60,000.

China (includes Hong Kong)

Entangled by constraints related to the strict zero-Covid measures, several auctions and fairs were cut-short, rescheduled or cancelled. Mandatory hotel quarantines for arrivals in Hong Kong and city-wide lockdowns in mainland China slowed growth and dealt a blow to consumer confidence. Art sales in China contracted by 14% year-on-year to US$11.2 billion. Of which, Chinese paintings and calligraphy constituted almost half of the art sales, while 28% came from ceramics, lacquer and metalware. The remainder was attributed to contemporary art and oil paintings.

Art Basel Hong Kong 2023 recently concluded in March 2023. Its origins can be traced back to the early 2000s when the Hong Kong government aimed to establish the city as a cultural hub in Asia. This initiative led to the creation of The Hong Kong Arts Development Council (HKADC) in 1995, which played a pivotal role in cultivating the local arts scene. In 2007, the first edition of the Hong Kong International Art Fair (ART HK) was launched. By 2013, ART HK was sold to Art Basel. Art Basel was founded by Basel gallerists Ernst Beyeler, Trudl Bruckner, and Balz Hilt in the 1970s. In 2002, Art Basel expanded into Miami. When they launched the inaugural edition of Art Basel Hong Kong in 2013, it was a resounding success. The fair attracted over 60,000 visitors and featured 245 galleries from 35 countries.

The 2023 edition marked its first fair in 4 years. It showcased works from 177 galleries from 32 countries, including 22 first-time exhibitors. Many collectors, A-list artists and celebrities including Pharrell Williams were among the 86,000 visitors. The fair helped to dissipate pent-up demand for art in the region, especially mainland Chinese buyers, with numerous 7-figure sales. The strong sales benefited local galleries too. Kwai Fung Hin sold Li Huayi’s ink on Japanese gilded screen, Melody of Ink under Gold Shine II (2022), and Lalan’s Rouge, la Révolution (1989), each for an amount between US$637,000 to US$764,000.

Singapore

Like Hong Kong, Singapore has established its own National Arts Council (NAC) to spearhead development of the arts scene in Singapore such as Our SG Arts Plan. With strong government backing, NAC aims to strengthen community through shared arts experiences, unlock spaces for arts, grow artistic talents, etc.

While strong government support is key, most of the buzz about Singapore’s quest to become the next arts hub is founded in its position as a global financial hub. Robust financial infrastructure, strong connectivity to regional and global partners, stable political landscape, favourable income tax rates, etc have been pivotal in attracting an influx of wealth into Singapore and an upsurge of family offices in Singapore. According to the Singapore Asset Management Survey 2021, Singapore's assets under management have surged from S$4.7 trillion in 2020 to S$5.4 trillion in 2021. It is anticipated that this inflow of wealth will stimulate art sales.

In January 2023, the highly-anticipated debut of ART SG took place, with 164 galleries showcasing their works to an impressive 43,000 visitors. On opening day, White Cube sold 17 pieces, worth around US$3 million. Other galleries, including David Zwirner, Yavuz Gallery, and Eslite Gallery, also reported robust sales. This inaugural exhibition was widely praised by many galleries, who sought to establish relationships with key players in the region and forge long-lasting connections with Southeast-Asian buyers. Plans are already underway for a second edition of the fair. Check out our video/blog for our coverage on Asia Pacific’s biggest art fair launch in a decade.

Closing Thoughts

#MeetArts represents emerging artists in Singapore. Given Singapore is set to become the next international arts hub, #MeetArts hopes to cultivate greater art appreciation for Singaporean artists in the community in Singapore and beyond. Collecting or investing in emerging artists is a good starting point for any budding art enthusiasts or veteran art collectors looking to diversify their collection. #MeetArts is set to launch our inaugural art carnival in June. Stay tuned for more information. 

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