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| Jamie Ritchie, Head of Sotheby’s Wine Department, North America, conducts the company’s autumn wine auction in Hong Kong |
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The recent sell-out sales tell the story. Auction houses Sotheby’s and Acker Merrall & Condit say their latest auctions in Hong Kong far exceeded expectations, with buyers, most of them Chinese, snapping up millions of dollars worth of fine wine.
At Sotheby’s autumn sale, 3-4 October, the offerings of two American collectors realised HK$61.5 million (US$7.9 million), with all lots sold. Asians represented 99 per cent of the buyers, and Sotheby’s says 79 per cent of the lots fetched prices well above their pre-sale estimates.
Jamie Ritchie, Head of the Wine Department, North America, believes the results put Hong Kong on track to become Sotheby’s largest sale centre this year, with sales of US$14 million, ahead of New York (US$12 million in sales) and London (US$11 million).
“Both Sotheby’s and, importantly, our consignors have been delighted with the success of our first auctions in Hong Kong, all of which have ended up 100 per cent sold and for prices above our expectations. We are looking forward to building on this success over the coming years,” Mr Ritchie said.
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Acker Merrall & Condit's September wine auction in Hong Kong set two world-price records
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Beyond 2010, Mr Ritchie said Hong Kong would continue to rival both New York and London as the world’s largest wine auction centre. “As a result, we will dedicate the same focus and attention on the Hong Kong market as we do already in the United States and United Kingdom. We plan on building upon our successful sales by increasing the size and frequency of our auctions, while maintaining our focus on offering great wines, in exceptional condition and with impeccable provenance, which is where we see the strongest demand from buyers.”
Spectacular Results
New York-based Acker Merrall & Condit is still celebrating the “spectacular results” of its third fine and rare wine auction of the year in Hong Kong. The September sale realised nearly HK$50 million (US$6.4 million) and was the auction house’s first sell-out sale.
Together with its March and May auctions, which totalled HK$72.5 million (US$9.32 million), Acker Merrall & Condit’s sales in Hong Kong so far this year are an impressive HK$122.5 million (US$15.7 million).
John Kapon, President and Auction Director, said the autumn sale was a clear indication that the wine market has bounced back, and of Hong Kong’s growing importance as an auction hub.
“Hong Kong is now arguably the fine-wine world’s most important market, and we look forward to further developing our business in Hong Kong and strengthening Hong Kong’s position as the wine capital of Asia,” he said.
Acker Merrall is scheduled to hold its fourth auction of the year this week, 7 November. It also held its first exclusively Hong Kong Internet-only auction late last month – a move Mr Kapon considers “an important step in continuing to expand our presence here in Hong Kong.”
Only the Best
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David Elswood, Christie’s International Head of Wine, reserves the
best wines for its Hong Kong sales
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Christie’s concurs, with David Elswood, International Head of Wines, revealing that Christie’s puts only the rarest, most expensive vintage wines up for sale in Hong Kong. He said recent figures do indicate that Hong Kong has overtaken the traditional centres of London and New York for wine sales.
“As Asia is a vibrant leader of the world economy, interest in fine wines is blossoming,” Mr Elswood said. “Hong Kong, with its well-developed business, financial, legal and import/export infrastructure, its large and diversified talent pool, and best of all, its abolition of wine tax, is a natural hub for the wine business.”
Christie’s is noting more Asian participation at its sales worldwide – up from seven per cent in 2005, to 61 per cent in the spring sales this year. Many are from Hong Kong’s nearest neighbour, the Chinese mainland.
“Chinese buyers have been increasing significantly at Christie's wine sales over the past years – for instance, Greater China buyers from our 2005 and 2009 spring sales grew a stunning 856 per cent, and just comparing 2008 and 2009 spring sales, buyers from Greater China grew 177 per cent,” Mr Elswood said. “These kinds of growth rates are achieved not only because of the deep purchasing power of buyers in this area, but also because more and more buyers are becoming more knowledgeable and sophisticated.”
He added that with consistent sell-through rates of more than 90 per cent and Hong Kong fetching the highest average lot value among competitors in the region, “we are pleased with the success of Christie's wine sales in Hong Kong.”
Trade Stimulus
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| British wine writer Jancis Robinson applauds Hong Kong’s commercial advantages for wine trade |
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The Luxury Iceberg
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Wine is just the tip of the luxury iceberg for the top-end commodities market. Expensive jewellery, gems and fine art are increasingly being traded in Hong Kong by international auction houses, as the city becomes the epicentre for Asian wealth.
At the Sotheby’s Hong Kong Autumn Sales 2009, more than 2,400 lots brought in HK$1.3 billion (US$166 million) – the third-highest total for a Sotheby’s Hong Kong sale series, and 88 per cent above the spring 2009 sale.
In addition to spectacular wine sales, highlights of the October sale series included more than HK$182 million (US$23 million) for a set of fine Chinese paintings, and about HK$109 million (US$14 million) in 20th century Chinese art. The sale of fine Chinese ceramics and works of art realised a combined total of HK$486.4 million (US$62.4 million), 173 per cent above the spring 2009 sale total.
Patti Wong, Chairman of Sotheby’s Asia, said every sale exceeded expectations. She said strong bidding, particularly for the top lots, gives “a clear indication that our clients – both long-time collectors and those new to the market – are after the most valuable and rare works.” She added that Chinese participation in the autumn sales was notably stronger – “testament not only to the continued economic power of China but also our efforts in cultivating clients in this important region.”
Auction house Christie’s is also recognising the rise of Asia as a powerhouse of global wealth. When Christie’s auctions “the Vivid Pink,” a bubble-gum-coloured five-carat diamond with an estimated value of US$5 to US$7 million, the sale, next month, will be held, not in New York, London or Geneva, but in Hong Kong.
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Experts agree that the Hong Kong Government’s scrapping of wine duties last year propelled the city to its current status as a convenient and cost-effective hub for international wine trade.
“I cannot think of any government other than Hong Kong's that has such a positive and proactive policy towards wine,” said internationally respected wine writer Jancis Robinson.
“It is really a sign of the times that while, for example, the French and British governments are busy constructing an ever more repressive regime against alcohol of all sorts, and lumping even fine wine in with alcopops, flavoured alcoholic drinks, Hong Kong authorities are actively seeking its commercial advantages.”
Jamie Ritchie of Sotheby’s agreed. “The zero-tax rate means that great collections from outside Asia will come to Hong Kong for sale and, over time, the inventory of fine wine will increase to the point when there will be enough wine in Hong Kong to have a local market, without the need to ship wines from the US or Europe.”
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Carson Chan, Managing Director of Bonhams Asia, expects a bumper sale this month
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Bonhams, which responded to last year’s tax abolition by announcing it would resume wine auctions in Hong Kong after a 10-year hiatus, agreed the incentive has been good for business.
“With the Hong Kong Government's commitment behind the wine industry, Bonhams sees this as one of our most important categories,” said Carson Chan, Managing Director of Bonhams Asia. “Combined with our in-depth knowledge of the Asian market, we hope to bring to connoisseurs and collectors important and interesting wines from all over the world.”
Bonhams will auction old and rare whiskies and fine and rare wines at the Bonhams Hong Kong 2009 Autumn Auctions, 27 November.
Related Links
Acker Merrall & Condit
Bonhams Asia
Christie’s
Jancis Robinson
Sotheby’s
