Auction market’s response to COVID-19 lockdown

New Zealand auction houses were about open viewing for their premium round of art sales when the level 4 lockdown due to Covid-19 was announced on 26th March, essentially putting all businesses into hibernation for a month.

As a result, the sales at Art+Object, Webb's, International Art Centre and Dunbar Sloane scheduled for late March and early April have now been postponed until the lockdown is over and there is more clarity around businesses operations.   Also affected is Auckland auction house Cordy's, which was due to offer its first sale at new premises on Mt Eden Road - moving from its Great South Road premises after 35 years.

With uncertainty around how long the lockdown may last, several auction houses have moved their sales online to service their clients.  Webb’s, who are no strangers to the online sales, having used the format regularly to present items of lower value,  have been offering wine and jewellery sales online (wine can be shipped immediately after purchase, as it's considered an essential item, jewellery needs to wait until restrictions are lifted.) They are also preparing an online sale of Art and Photography to run 1-7 May.

International Art Centre has offered it's first online sale through auction site Invaluable which runs until 16 April.  The sale comprises of 65 lots with estimates mainly under $10,000.  In order to encourage clients to bid online, IAC will absorb the 5% Invaluable fee which is usually added to the buyer's premium.  

If the restrictions around the numbers allowed at public gatherings continue over the next few months, the auction houses will need to quickly rethink selling strategies and we may well see the industry pivot towards more online and private treaty sales.

By Briar Williams