Hong Kong’s status as the Asia-Pacific region’s leading art hub is being tested, but new investments and collaborations suggest the city remains a major player in the global art market.
Hong Kong’s return to confidence is undeniable, with both government and private investment fueling ambitious new projects and long-term development. The city is not immune to macroeconomic pressures and geopolitical complexities but remains one of the most stable places in a globally unstable moment.
A growing population of high-net-worth individuals in Hong Kong, with both Fotini Xydas, head of art finance at Citi Wealth, and Betsy Bickar, an art advisor and SVP at Citi Wealth, affirming the city’s role as a main hub for international art trade in the Asia-Pacific. The arrival of Art Basel in 2013 and subsequent expansion of international auction houses into the city have cultivated a more globally oriented collecting culture.
Hong Kong's art market has experienced significant growth in recent years, driven by a surge in demand for contemporary Asian art.
The city hosts several major art fairs and auctions throughout the year, including the 'Hong Kong International Arts Fair' and the autumn sales at 'Christie's' and 'Sotheby's'.
According to a report by 'Art Basel' and UBS, the Asian art market accounted for 33% of global art sales in 2020, with Hong Kong being a key hub.
The city's unique blend of East and West has made it an attractive destination for artists and collectors alike.
Despite new challenges, including the consequences of an escalating U.S.-China trade war, Hong Kong is pushing back through new investments. The government’s Mega Arts and Cultural Events Fund supported both Art Basel and Art Central, while suspending backing for PHOTOFAIRS, which was eventually canceled. The city’s cultural sector faces economic headwinds, with significant private investors needed to cover a HK$1 billion deficit.
China’s total auction sales dropped 46.1 percent in 2024, while Hong Kong’s auction market took a hit, with modern and contemporary art sales declining by 33 percent. However, data from the Art Basel & UBS survey showed signs of resilience in the region, with respondents reporting the highest levels of median spending in Mainland China.
Phillips reported a 22 percent increase in its Hong Kong sales during its 2024 spring auctions compared to October 2023. The M+ museum signed a new Memorandum of Understanding (MOU) with MoMA, further positioning itself as a cultural leader in the region.
The number of millionaires is crucial in understanding the region’s true market potential. According to the Art Basel & UBS report, Asia’s share of global billionaire wealth has risen to 27 percent, surpassing Europe’s 22 percent. The fastest growth in millionaire numbers is expected in key Asian regions beyond Mainland China.
Amid ongoing challenges and uncertainties, this year’s Art Basel will serve as a litmus test for Hong Kong’s current role in the global art market. With significant investments, new projects, and collaborations, Hong Kong remains a leading art hub in the Asia-Pacific region.
