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In London, Geneva and New York, the leading auction houses have mostly remained at the same prestigious addresses for decades. However, in Hong Kong, three of the top four auction houses have relocated their Asia-Pacific businesses this summer, to swish new premises in the business district of Central.
The moves provide more space and opportunities for a dynamic year-round programme of sales and events, replacing the traditional twice-yearly auctions for watch, jewellery and art collectors.
It is a remarkable coincidence. Bonhams opens its new doors in November, hot on the heels of Christie’s which, as of September, occupies three floors of The Henderson, a skyscraper designed by Zaha Hadid Architects, with a top-floor restaurant. Sotheby’s opened a cavernous gallery and retail space in Landmark Chater in July. And, before that, in early 2023, Phillips moved its Asian headquarters to the West Kowloon arts district and established a dedicated watch retail concept in Central.
All these investments demonstrate a huge vote of confidence in the territory and its role as the art world’s Asia hub.
Christie’s has been in Hong Kong for nearly 40 years and Apac now accounts for a significant 21 per cent of its global auction total. This is “evidence that the region is globally active”, says Francis Belin, president of Christie’s Asia Pacific. “Mainland China, closely following Hong Kong, stands as the second-highest-spending region in Christie’s global sales.” Hong Kong is, therefore, a crucial part of its strategy in Asia, with the opening heralding a three-month series of sales that started in September and includes luxury (watches and jewellery) auctions this month.
Hong Kong typically attracts collectors from around the region, particularly China. They are lured by the tariff-free imports of arts and luxury goods. Even amid Hong Kong’s economic slump — the popular shopping destination was hit by China’s weak spending — the luxury sector has remained a bright spot. Hong Kong’s luxury market is predicted to grow 4.5 per cent a year until 2030, to an estimated $16.1bn, according to accounting firm PwC.
Other advantages, points out Nathan Drahi, managing director of Sotheby’s Asia, are an “established primary and secondary art ecosystem and the growth of a diverse museum footprint”. Hong Kong represented 30 per cent of the auction house’s global transactions in 2023, and its new home in Central is, he says, “part of a $1bn strategic project by property developer Hong Kong Land and its most established tenants, to strengthen Hong Kong’s status as a major player in the global art and luxury market”.
Sotheby’s self-styled “maison” covers two-floors. There are five thematic galleries for masterworks and luxury objects exhibitions, a concept store of curated objects, a café, and street access, which is rare in Hong Kong. It gives the auction house more space and an opportunity to stage additional sales. The first of these, of jewellery and watches, was on Wednesday. The maison “offers a museum-quality experience and encourages collectors to appreciate the craftsmanship and history behind each piece”, says Uni Kim, Sotheby’s jewellery specialist. It not only highlights the beauty of the jewellery, “but also contextualises it within a larger narrative of art and culture”, she says.
Nearby, in Six Pacific Place, is Bonhams’ new auction base. A relative newcomer, Bonhams arrived in the city in 2007 and opened a regional headquarters in 2014. The house had a standout year in 2023, with a 33 per cent surge in spring sales, says Bonhams Asia’s managing director Julia Hu. Bonhams also had an influx of new and young clients, who helped to fuel that growth.
“Clients are looking for an enhanced end-to-end experience from the moment they step into the gallery, to how artworks are displayed and the events we host,” says Hu. These include educational workshops that delve into watch knowledge and craftsmanship, and explore watch industry trends.
“The new space will allow us to not only engage our existing collectors but also reach new watch enthusiasts,” says the region’s director of watches, Sharon Chan. This is particularly noticeable, she says, with an influx of the younger tech-savvy generation drawn to the convenience of Bonhams’ online auctions. They often have tighter budgets “but demonstrate a clear vision of the watch styles they are interested in”.
The opening of bigger salerooms “will definitely magnify the luxury watch market”, predicts Alexandre Bigler, head of watches for Asia-Pacific at Christie’s, where The Henderson headquarters has just hosted the roadshow of the nominated watches for the 2024 Grand Prix d’Horlogerie de Genève.
Meanwhile, Phillips’ move into the arts district has allowed it to programme complementary events with M+, a contemporary visual arts museum, and the Palace Museum. Its watch auctions sold 100 per cent of lots offered in 2023. That included the $6.2mn sale of the Patek Philippe once owned by China’s last emperor Aisin-Gioro Puyi. Jewellery sales were similarly successful, up 40 per cent in 2023 compared with 2022.
Its watch concept store — Phillips Perpetual, in the historic Pedder Arcade in Central, where customers can buy and sell fine watches beyond the twice-yearly auctions — is also working strategically. It has already gone down well with Phillips’ millennial and Gen Z Apac customers, who form the largest proportion of its bidders and buyers.
