The Art Newspaper

Soft landings in hard times

The pace has been slower, the prices lower, but collectors are still buying art

By Georgina Adam and . From Art Basel Miami Beach daily edition
Published online: 06 December 2008

Expectations were low as the seventh edition of Art Basel Miami Beach opened to VIP guests last Wednesday. The November auctions had been disappointing in New York, and the Florida fair was the first opportunity to assess how much life there was still in the market. Three days in, it was becoming clear that sales had indeed been affected, but for some it marked a return to the way the fair used to be before the “irrational exuberance” of the art market boom. For others, it was the start of a new kind of fair.

Dealers were realistic. “The art market cannot remain immune to the financial meltdown,” said Gerd Harry Lybke of Eigen+Art (B7): “We have sold 80% less than last year, and what’s happening in the outside world affects us.” Nevertheless, he had placed Neo Rauch’s Der Altar, 2008, with a British collector for well over $100,000 and a Tim Eitel with a US collector. Other dealers reported drops in sales running from 30% to 50% compared with last year—at the height of the art market boom. However, many found the level of sales reassuring, especially in comparison with the general state of financial markets and the overall economy.

“I’ve seen fewer curators, celebrities and collectors, this is a completely different fair,” said Gertraud Presenhuber (D10), who nevertheless had sold Mark Handford’s large bronze Black Candle, 2008, for $185,000 to a European collector. But Ms Presenhuber, like many, said: “We now have the chance to take care of the artists and the collectors.”

Floor Wullems of Dutch gallery Annet Gelink (N33), selling conceptual work by the likes of Ryan Gander, added: “Sales are taking more time but the good thing is that people are taking more time to get to know the work. In previous years, people were just rushing onto the stand and saying I’ll take this, this and this.”

Compared with last year, the high-priced, extremely large-scale works, aimed at institutional purchasers or mega-collectors, had all but dis­ap­peared. Gone, for the moment, are the days when Mary Boone (F7) could clinch a single $10m deal for five paintings that would require a wall at least 43ft long, as she did last year. This year there were only eight such outsized pieces on offer.

Nor indeed were there many major Richters, million-dollar Gurskys or pricey Murakamis this year. Many dealers had chosen to bring more modestly-priced works, in anticipation of constrained budgets.

“I made some strategic ­decisions in what I was ­bringing,” said Barbara Gladstone (E11)—and it paid off. She sold Anish Kapoor’s blue In Out, 2008, in the high six ­figures. London’s Lisson Gallery (E8) also reported selling a red fibreglass Kapoor (Untitled, 2008) for $1m. The Project (C21) sold Julie Mehretu’s huge Half to Rise and Half to Fall, 2008, for $700,000 to a European foundation.

“We have made quite a few sales but generally under $100,000,” said Art Dealers Association of America president Roland Augustine of Luhring Augustine (F9), noting sales at prices between $6,000 for The Schumann Machine, 2008, a video work by the rising Icelandic star Ragnar Kjartansson, to $95,000 for Pipilotti Rist’s shelf-installation, Enlight My Space, 2008, bought by a private Swiss ­collector for $95,000.

Other dealers declared they had done better than predicted. “We were expecting a crash, but we got a soft landing,” said Xavier Hufkens (H13). “I was not going to buy anything this week, but as I walked from the back of the hall to my booth, I bought five pieces.”

Another encouraging sign was stronger buying by Latin Americans. In October this year the organisers hosted a VIP event for 350 collectors during the São Paulo Bienal. The fair’s Junior Host Committee is 80% Latino, said Annette Schönholzer, fair co-director. These efforts seem to have paid off, with a number of dealers reporting sales to Latin Americans. Strina Gallery (E14) from São Paulo sold three “ladder” sculptures by Cildo Meireles, who is currently enjoying a major solo show at Tate Modern. All the works, entitled Descala, 2002, and priced at $300,000, went to South American buyers. At Max Hetzler (D11) Mona Hatoum’s mesh Cube, 2008, went for €160,000 to Venezuela.

Compared with last year, buyers are taking longer to make decisions, and many dealers are still talking of “holds” rather than “solds”. “The rhythm of the fair has changed; before all the sales were at the first moment,” said Elena Tavecchia of De Carlo of Milan (C14).