Irish art sales up - because of recession

SALES OF Irish art grew significantly in 2010 despite, or perhaps because of, the continuing economic turmoil. The country’s leading art auctioneers have reported increased demand for “safe haven” investments as confidence in the stock market and even bank deposits declined. Although prices have fallen sharply from the highs achieved at the height of the boom, sales rose last year.

Ireland’s biggest fine art auctioneers and valuers, Adam’s, said that sales of Irish art had increased by 54 per cent in 2010 with a noticeable increase in new customers “who were drawn to the idea of buying art even in these economically difficult times”.

Managing director James O’Halloran believed there would continue to be “consistent demand for good quality items and that buyers are out there waiting for opportunities to invest”. He acknowledged that the challenge was to source enough good quality fresh stock with good provenance.

Whyte’s of Molesworth Street also reported an increase in turnover compared to 2009, albeit at the more modest rate of 10 per cent and the best-selling paintings were by traditionally popular artists Paul Henry, Sir John Lavery and Jack B Yeats.

Managing director Ian Whyte said the firm was actively developing its export business and reported some good overseas sales especially to the growing number of Irish-born professionals working abroad.

Mr Whyte said there was a shortage of high-worth paintings for sale because owners prefer to hold on to what is proving to be one of the safest havens for money in the world today.

He was confident that works of quality and rarity will continue to sell well in 2011, but run-of–the-mill material will be difficult to sell at all. Who is buying? Mr Whyte said: “Knowledgeable collectors make up the majority of buyers – the speculative investors have left the scene with a resultant drop in values for the artists they fancied.

The latter included Louis le Brocquy, Gerard Dillon, Dan O’Neill, Donald Teskey and John Shinnors, all of whose works are now selling, but at reductions of up to 50 per cent off their peak in 2006-2007.”

Rory Guthrie of de Vere’s Art Auctions in Kildare Street also reported a rise in new clients purchasing Irish art and the return of buyers who refrained from purchasing during the overheated years.

He noted that realism has returned in terms of prices and that “there are still plenty of buyers available for works of quality, which are accurately estimated”.

His advice for 2011? “There has never been a better time to invest in Irish art. The secret is to be patient, find only quality and take a reasonably long-term view, five years or more. The current environment may well force better paintings onto the market which will provide opportunity. I’ve always found it better to stretch that bit further to acquire the better work.”

Mr Guthrie said artists to watch in 2011 included Hughie O’Donoghue, who has performed very well in a falling market, and that Patrick Collins, Tony O’Malley and Charles Brady were others where real value is now on offer.