Malls in Singapore are not the only ones slashing prices and putting merchandise on sale.

Art galleries such as ArtMosaic in Hill Street and Indigo Blue Art in Neil Road, which shows contemporary Indian art, and Utterly Art in South Bridge Road, which specialises in Filipino art, have had sales with prices of artworks cut from 10 to 30 per cent.

And even as auction houses gear up for the auction season, which begins next month and stretches till May, they are bracing themselves for lower takings.

Larasati Auctioneers says art sales will be down by as much as 30 to 40 per cent compared to last year, as investors and speculators spend more cautiously.

It was very different last year, when the art market was booming

Last year, Larasati sold close to 90 per cent of the 214 lots offered in its April auction. In its October auction, it sold about 70 per cent of the 200 lots.

Both auctions had record sales of $5.4 million, the highest since the auction house, which is Jakarta-based, entered the Singapore market in 2003.

International auction house Christie’s Spring 2008 sale in Hong Kong totalled US$310 million (S$473 million), making it the most valuable series of art sales held in Asia.

Things started to change at the end of the year, when economies tumbled down globally.
Borobodur Auction’s two-day sale of Chinese and South-east Asian art totalled $11 million, missing its presale estimate of $18 million, while Larasati Auctioneers’ October sale realised $2.1 million, less than the $2.5 million predicted.

And as the economic crisis deepens, some in the art industry predict that things will get worse.

Mr Valentine Willie, 54, who owns Valentine Willie Fine Art in Keppel Road, says: “There were six South-east Asian art auctions here last year. This year we will be lucky if we see four. Let’s just say wherever the economy is going, the art industry is bound to go the same way.”

Ms Caroline Banerjee, 42, owner of ArtMosaic, agrees. “The buying mood for art is very low now, regardless of whether people have the money or not.”

Art galleries and auction houses are coming up with strategies to stay afloat.

Ms Banerjee, for example, has a solo show of established Indian artist M. Suriyamoorthy which opens today.

She has not printed a show catalogue nor flown in the artist for the opening. With works priced between $400 and $3,500, she would have been confident of a sell-out show last year.

But this year, she says: “It is a matter of waiting and watching. I don’t think anybody can predict anything.”

Auction houses are offering more tightly curated auctions. Artworks which have been doing the rounds of auction houses are less likely to be seen now. The focus is on star lots and on exceptional quality. This means that fewer artworks will go on show.

Mr Benny Oenardi Raharjo, 48, director of Masterpiece Auction House, is offering 303 lots for its upcoming Singapore auction next month, compared to 400 lots offered in its auction last March.

Mr Kevin Ching, 52, chief executive officer of Sotheby’s Asia, says: “We have been extremely selective and discriminating in putting together our Spring Sales in Hong Kong in April. The emphasis is on exceptional quality and provenance.”

The one silver lining is that speculators who used to drive up prices as they snapped up artworks as investments are out of the market this year.

It means prices are unlikely to hit record highs when they go under the hammer.

Mr Willie says: “Much as we like to denigrate the speculator, we will miss them. They added excitement to an otherwise dull art market.”

Despite the gloom, Mr Daniel Komala, 46, chief executive officer of Larasati Auctioneers, remains upbeat.

He says: “Every crisis throws up new opportunities. We will see new groups of people ready to enter the market. There is no better time than now to buy art as the market is experiencing on average, price corrections of 30 to 40 per cent. Collectors can now invest in good-quality artworks with substance at fair prices.”

Art collector and broadcaster Rico Hizon, 42, and his wife Melannie Syquia-Hizon, 37, call art “a safe bet”. They say there are some recession-proof artists like Filipino artist Ben Cab, whose work will hold its value.

While this is a good time to start an art collection, they say the important thing is not just to look at a particular artist but also to assess his works before investing.

Mr Hizon says: “You need to go with your gut feel. Art has to be something you enjoy. If you can’t bear to see it on your walls, don’t buy it. Always remember to work on a budget and if you don’t have the money, don’t buy.”

Art experts say that despite the economy tanking, great art will continue to be made.

And the good news is that since South-east Asian art never quite reached the dizzying heights of contemporary Chinese or Indian art, the fall will not be as steep for those who own these works.

It also means that people who want to collect South-east Asian art will not be priced out of the market.

Mr Howard Rutkowski, 53, founder of Fortune Cookie Projects, a Singapore-based curatorial and arts advisory service, advises new collectors: “Look, listen and learn. Attend biennales and major art fairs. These are a barometer of what the art world is paying attention to. Never buy at an auction until you understand the market fully. Auction houses are trend-followers, not trend-setters.”

Ms Vera Ong, 51, owner of Art-2 Gallery, says: “If you do not have a large budget, buy an A-grade work done by a younger artist rather than a B-grade work of an established artist.”

Other experts say this is the time to look at new names and upcoming artists.

Mr Willie says: “There are many regional artists whose works are greatly under-appreciated and therefore underpriced, so you could say they are recession-proof simply because you can buy their work for well under $2,000.”

Art collector Navaz Dastur, 54, who has been collecting Indian art with her banker husband Khushroo Dastur, says she will be looking at buying art from other parts of the world.
“No doubt, we will be buying very selectively. But I will also be looking at the work of Chinese artists as I am sure their prices will show some correction.”

This article was first published in The Straits Times, Life, on Feb 19,2009.