BUSINESS ART DECEMBER 2009 - JANUARY 2010 | E-mail: subs@arttimes.co.za | Member of the Global Art Information Group
THE LAST WORD EDITION DECEMBER 2009
The 2009 auction year in review By Michael Coulson
slightly less, at about R48.5m.
Just how big is the SA art auction market? Well, the only thing you can be sure of is that any published figures -- including those in this article -- will be wrong. Some reasons for this are unavoidable: on the one side, it’s not uncommon for works not sold on the night to be sold afterwards by public treaty; on the other, buyers caught away by the excitement of the night may subsequently renege (as apparently happened in large numbers at the Paris sale of the collection of the late Yves St Laurent). Neither of these events can be captured in the price lists auction houses put out immediately after the sale, which are what media reports and the houses’ own PR releases are based on. Nor are they generally publicised later, the failed “Tretchikoff” at Graham Britz’s sale of the Brett Kebble collection being a rare exception. The first event means that reports are understated, the second that they are overstated. Then, allowance must be made for publicity-related hype. In November, consultancy Artvault estimated Stephan Welz & Co (Swelco)’s art sales to that date at R40m. Swelco told the Financial Mail that they were in fact R55m, with another R15m expected in the November sale.
Rosewitz, incidentally, tells me that Swelco’s total turnover (all departments) in 2008 was R180m, so it certainly took a big knock from Strauss. He admits Swelco had to cut its dividends but says it’s still profitable and well capitalised, flatly denying market rumours a couple of months ago that he and chairman Mark Kretschmer had had to put in more capital. Turnover is back to where it was in 2006 when they took over, which was 50% up on the previous year. By my count, there were nine sales by the three major auctioneers in 2009, summarised in the table below:
When I asked Swelco deputy chairman Jack Rosewitz what Swelco’s total 2009 turnover was, and how much of it was art, he put the total at R100m, of which about R80m was art. By both Artvault’s and my calculations, this is a substantial overstatement. Artvault’s figure would gross up to about R52m for the year, while I make it
The Kebble sale was unique,
Guy Tillim: Piazza dei Cinquecento to be seen at Michael Stevenson’s Summer 2009/10: Projects until 16 January 2010. For more see: www.michaelstevenson.com
part of the market in SA art but arguably not part of the SA art market.
Month
House
Venue
Sold by Sold by number# value*
March April May May Aug Sep Oct Oct Nov
Strauss Swelco Britz Swelco Swelco Strauss Strauss Swelco Swelco
Jhb Jhb Jhb CT Jhb Jhb CT CT Jhb
87 83 92.5 79.5 71 73.5 83 70 77
Total
123 70 101 76 75,5 102 75.5 93 107
Gross revenue+ 37.0 6.0 50.6^ 7.6 7.8 23.5 33.5 14.8 12.3
ZAR 193.1 M
Notes: # % of lots on offer; *% of total low estimates; ^Excl’s “Tretchikoff”
This compares with a grossedup figure from Artvault of about R235m, though they work on hammer prices while, in line with international practice, my prices include buyer’s premium. On a comparable basis, the Artvault figure would probably be somewhere above R260m. Artvault also includes some (but not all) of the minor houses, like Pretoria’s Bernardi Bros, as well as sales in London, which it puts at R45m and are no doubt
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a Stern still life, R5.57m for Stern’s portrait Carla, a world record both for the artist and an SA sculpture of R946 900 for Van Wouw’s Noitjie van die Onderveld and a record R1.225m for Jean Welz’s Still Life Cezannesque.
Errors and omissions excepted, these figures are remarkably symmetrical. They show that in its first year Strauss & Co captured as near as dammit 50% of the art auction market with the balance split equally by Britz and Swelco . Remarkably, too, some 45% came in two of the first three sales of the year, Strauss’s inaugural sale and the Kebble sale. These were for different reasons one-offs.
and there can be no doubt Strauss’s Stephan Welz pulled out all the stops and used his unequalled contacts to ensure an unprecedented event. But for this, some of the lots may have been held back from 2008, others may have appeared later in the year and others may not even have come on to market at all. Still, after Kebble, Strauss’s sales were the year’s three biggest, indicating the impact this newcomer had. However, even it may not be immune from hype: Strauss claims its sales topped R100m. By my count, it grossed just R91.5m from art, with another R4.8m from its first furniture and silver sales, at its Cape sale. In a review of its year, Strauss chairman Elisabeth Bradley cites some of the artists for whom the house achieved record prices: Anton van Wouw, Irma Stern, Jean Welz (father, of course, of Stephan), Wolf Kibel, Frans Oerder, Freida Lock, Dorothy Kay, May Hillhouse and Edoardo Villa. As highlights, she mentions R7.24m, a world record for
She also trumpets the defection of “the key staff” from Swelco’s Cap office, though both Rosewitz and Swelco chairman Mark Kretschmer have separately asserted to me that they didn’t rate the trio that highly. A touch of exaggeration on the one hand, and deprecation on the other, perhaps. One of Swelco’s most remarkable results came in its final sale, when it reached a world record for William Kentridge: R1.456m for a drawing, against an estimate of only R400 000R600 000. Among its other triumphs was a record-equalling R3.136m for a Pierneef Baobab. A lesser record was R291 000 for Bettie Cilliers-Barnard, amazing because the estimate was a mere R14 000-R18 000. In his single sale, Britz claimed 26 world records, notably R3.85m for Preller’s Christ Head and R660 000 for a Volschenk Riverside landscape. Of course, one can’t ignore London, where there were three main sales including SA art. Bonham’s sale of African Contemporary Art in London on April 8 was a disaster. Overall, 50 of 95 lots sold, or 53%, but £352 000 gross fell under half the low estimate of £731 000. Of 35 works by SA artists, 35 sold. But because the two highest estimates didn’t sell, the £105 000 gross was only 27% of the low £391 500 estimate.
Bonham’s October sale of SA art grossed £2.36m by my count (the house claimed £2.5m), against a low estimate of £2.49m, and was about 55% sold by number. These figures compare with £7.1m for a single, world record, sale of SA art in September 2008, suggesting that the market for SA art held up better at home and hardly bearing out Bonham’s repeated claim that the centre of the SA art market is now in London. Still, Bonham’s is persisting in this market. Next March it holds both an SA sale in London and a sale titled Africa Now in, interestingly, New York. The third London sale, in September was Sotheby’s Art for Africa charity sale, for which it waived buyer’s premium. A gross £457 000 was in the upper range of the £358 500-£507 000 estimate, with only two of 38 lots unsold. And the disaster of the year? Unquestionably, the cancellation of a R3.1m “Tretchikoff” Lost Orchid at the Kebble sale, which Britz insisted was kosher long after the Tretchikoff family and most art historians had questioned it, if not rejected it outright. How the reputational damage of this will affect Britz’s planned annual sales of SA art remains to be seen. But there will surely be changes in market share in 2010. Neither Britz nor Strauss are likely to be able to repeat their best results of 2009. On the other hand, Strauss plans to broaden its non-art coverage. But on balance, Swelco could well recover market share at the expense of both its competitors, though the total size of the market could fall.
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