Art market slump despite record sale

Compared to the buzz of the last two years, the art market seems to be experiencing a tough time with annual turnover down by more than 50%. Auction houses are therefore facing a challenge about how to overcome this slump.

It's that time of year again. Eager collectors embark on a treasure hunt. However, at this year's preview of the Spring Auctions in Beijing, crowds are noticeably thinner than in previous years.

Commentators note that it's not just the number of pieces on sale, but also the estimated prices of the artwork that are sliding.

A potential buyer said, "I think now prices are going to go down; they've been going down since last year."

Another said, "The market doesn't look too bad. And the price list seems OK, but yes the purchase prices are uncertain."

The most popular section of the auction, Chinese paintings and calligraphy, has also seen a downturn of between 30% and 70% in average price.

One of the prize lots at the China Guardian 2013 Spring Auction is the "Lady Red Whisk", estimated to sell for 12 million yuan, or about 2 million US dollars.

The piece is finally sold at a record price of almost 12 million US dollars. Despite this, it's clear that the market has been shrinking in the last few years.

Hu Yanyan, vice president of Guardian Auction, said, "The fluctuations are expected in the market. From our experience, it's natural to have a slight correction in the market after five quarters of increases. In fact this was predicted last year, so we're not entering this blindly."

This year's auction sees buyers exercising restraint and being rational with their purchases.

Another change this year is the low-end artwork on sale, making the often out of reach art auctions more accessible to the general public.