THE START OF THE SEASON

According to ArtTactic's "Auction Review for the 1st Half of 2024," slow economic growth and geopolitical uncertainty continue to take a toll on the global auction market. Global auction sales by Christie’s, Sotheby’s, and Phillips in the first six months of 2024 were 27.0% lower than during the same period last year. The impact has been particularly felt in the Post-War and Contemporary art segments. Despite the decline in the overall value of auction sales, the number of lots sold has remained relatively stable, suggesting that auction houses have adjusted prices downward to attract buyers. Additionally major galleries and auction houses have laid off staff over the summer and at least two dozen galleries closed in New York in the past year.

Last week the art world had a certain “back to school” feeling with both Seoul and New York holding key fairs.  As the third edition of Frieze Seoul opened its doors, South Korea faces a mix of economic and social challenges. While participation in art fairs has surged, sales haven't kept pace, signaling a shift in the art market from a period of rapid expansion to one of maturity. The initial wave of pop-up exhibitions from international galleries without permanent spaces in Korea, a hallmark of past editions, appears to be cooling down this year. The influx of global galleries and art fairs has undoubtedly intensified competition, but it's also sparked growth and innovation among local galleries and artists. For non-Korean galleries, building a presence has increasingly meant adding local artists to their rosters, capitalizing on the unique talent pool. Meanwhile, the Korean government is making waves of its own: alongside its substantial funding for the arts, it has recently relaxed export restrictions on local art created after 1946 and launched the Art Promotion Act. This new legislation is set to standardize the registration of art transactions and implement an annual market survey and a five-year development plan, which should spell positive change for the market.

The VIP preview of Frieze Seoul’s third edition saw tempered expectations, reflecting the country's economic slowdown—and sales followed suit. Good works are selling but with less urgency than in past editions. Yet, the energy remained palpable. This year, Frieze and KIAF weren’t the only players in town; they benefited from the inaugural Seoul Art Week (SAW) and Korea Art Festival (KAF), both running concurrently and drawing in even more visitors and attention. Nearby, the Busan Biennale and the Gwangju biennale added to the buzz, attracting a roster of institutional heavyweights, including MoMA PS1’s Cornelia Butler, UCCA Center for Contemporary Arts' Philip Tinari, and LACMA’s Michael Govan.

Meanwhile, New York was bustling with several art fairs, including The Armory Show (owned by the same organization as Frieze Seoul), Independent 20th Century, and Art on Paper. The Armory Show, now under the new direction of Kyla McMillan, revealed its most noticeable change with a reorganized floor plan, featuring more than 235 galleries this year. The fair boasted strong international representation, but it remains very much a New York event, with a significant presence of U.S.-based galleries. While it might be challenging for the parent organization to host two fairs on opposite sides of the globe at the same time, finding an alternative date is tough due to the packed schedules of potential venues and the desire to align with other cultural events in each host city. Despite these logistical challenges, the target audiences for these fairs are distinct, and larger galleries often have the resources to participate in both events simultaneously.

Several sales were reported at The Armory Show, but the general sentiment was that the market is slow and will likely remain so in the U.S. until at least after the upcoming November elections. Buyers view the political climate, global conflicts, and economic uncertainties as significant factors affecting their purchasing decisions. With so many unknowns, market hesitancy is understandable, and this uncertainty often has a dampening effect on sales. However, the fairs concluded on a more positive note than expected. Some dealers and advisors believe that the worst may be over. While sales were indeed slow and buyers were in no rush, there was still demand, and the competition for sought-after artists, although less intense, continues with shorter waitlists.

At The Armory Show, prices didn’t surpass the $1 million mark. The highest reported sale was Robert Motherwell’s Apse (1980–84), sold by Kasmin Gallery for $825,000 during the VIP preview. Other galleries reported sales mostly in the upper five-figure range. In contrast, Frieze Seoul saw higher price points, with several works reaching seven figures. The standout was Nicolas Party’s Portrait with Curtains (2021), sold by Hauser & Wirth for $2.5 million to a private collector in Asia.

Situated at the southern tip of Manhattan, the 20th Century Independent fair presents a distinct approach compared to other art fairs. With only 32 exhibitors from 22 countries, this fair is more intimate and curated, focusing exclusively on 20th-century art. Its mission is to challenge and redefine the canon of this period by spotlighting lesser-known or overlooked artists from diverse backgrounds, including various genders, ethnicities, and geographies. The fair's unique atmosphere is reflected not only in its curated selection but also in its pricing structure. Only three works are priced above $1 million, with several in the six-figure range; however, the majority are in the five-figure range, with the $20,000 to $50,000 bracket accounting for 26% of the offerings. This pricing strategy, coupled with the fair’s carefully curated focus, makes the 20th Century Independent a refreshing alternative in the art fair landscape.

In summary, while the art market may not be experiencing record-breaking sales or flashy price tags, there is no indication of a crash either. The situation varies by gallery: international giants continue to hold their ground, while smaller and mid-sized players are navigating more challenging terrain. The market isn't at a standstill, but sales are taking longer, with buyers being more selective about what they purchase and at what price. Several galleries and advisors are optimistic, believing that the market has already hit its lowest point. However, I remain more cautious. This past week marked the start of the season, and I would prefer to take a broader perspective and wait to see how the upcoming October fairs—Frieze in London and Art Basel in Paris—unfold.

For details on reported sales.