the Pandemic in some way influenced the redistribution of the demand in luxury goods category SuperVIP. As noted in the study Knight Frank (tracks an index of investment attractiveness of luxury items – 1 KFLII), the operating restrictions affected sales, but the two market – classic cars and works of art showed an increase of 3.3% and 1%, respectively.
according to the report, Knight Frank, this is quite a high percentage, given the cost of this category of goods, and price dynamics. By the end of 2019 classic cars have fallen in price on 7%, and over the last decade have risen by 194%.
“To the beginning of the quarantine for the high cost were sold cars at major auctions in Paris, Scottsdale and Amelia. For example, 2.8 million US dollars given for the model of Ferrari Enzo 2003 (Sotheby”s) and $ 2.2 million for the model Rolls-Royce Silver Ghost 1914 (Gooding & Co). However, the main deal of the year was selling for $7.1 million model Bugatti Type 55 Super Sport Roadster 1932 at Bonhams auction”, – are reported words of the Director of the Department of foreign real estate and private equity Knight Frank Marina Shalaevoj.
it is noted in the report, during the outbreak of coronavirus, the market was in a stable position, and the highest was index of collectible Ferrari cars.
Experts find it difficult to predict how long will this trend noting that after the end of the pandemic Covid-19 key influencers and the market will be the macroeconomic indicators: the levels of interest rates, inflation and asset prices.
“the Importance of these indicators, in turn, will depend on action by the States and the Central Bank in particular”, – stated in the Knight Frank report.
the company reminded that in 2019 the most significant factors which influence the market in General have become the uncertainty associated with the Brexit, and the strained trade relations between China and the United States to a greater extent influenced the segment of art.
“Global Index of artists prepared for KFLII company Art Market Research and tracking the changes in the price of art sold at international auctions, has shown increase in the cost of the asset 134% over the decade and 4% for the year. In the first quarter of 2020, the figure rose to 1%”, the study says.
experts note the significant changes that the pandemic COVID-19 has made to the luxury market – from transition to online auctions by leading auction houses and, as a result of going online, to reach a wider audience at the expense of young millionaires.
So, according to Marina Shalaevoj outbreak of coronavirus have had a direct impact on the number of public tenders and activities of auction houses, who were forced to move to online viewing and private transactions. Frommechetsya that the current decline in activity to some extent was offset by growth in online sales, which often are used by young collectors.
“During the closed 30 April online auction Christie”s “Contemporary art Asia”, in which was a virtual demonstration of the works of popular artists, was sold at 100% of the lots. Actual sales exceeded projections by 60%. In connection with the growing volume of online sales the auction houses will have to come up with new and attractive layouts in order to remain relevant needed” – sure, Veronica Lukasova from Art Market Research, the words of which are contained in the message.
the segment of the artwork, analysts say, the growth of sales of works by women artists, noting that if the recession in the economy hit hard around the world, it can be expected completions from private collections. “So, as a surprise at the may auction Sotheby”s became one of the rare works Orsola Maddalena of Cacci “still life of birds”, which came from an Italian private collection. The work was immediately purchased at a price 212 £ 500 (including fees) after 49 demands for the sum from 10 thousand to 15 tyyach£”, – stated in the Knight Frank report.
Experts say about the movement in the market of colored diamonds. “Over the last ten years the average price of this asset (in particular, pink, blue and yellow stones) increased by 77%. he most popular are pink diamonds has increased by 116%, while the price of the yellow increased by only 20%. For blue diamonds, the price rose by 81%,” say the researchers. At the same time, the report stresses, in recent weeks significantly increased the number of orders for products in this category of luxury segment.
Knight Frank Luxury Investment Index (KFLII) index, which tracks the cost of 11 classes of luxury assets, including Hermès bags, classic cars, art and rare whiskeys.