Art world prices evaporate

THE once booming international art market suffered another major hit from the global economic downturn last night.

A prestigious sale of works by Impressionist and modern artists in New York fell $100 million (£63.7million) short of its pre-sale estimates.

It is the third sale this week which has seen the high prices paid in recent years evaporate as buyers feel the impact of the credit crunch.

Although some works by Picasso, Kandinsky and Juan Gris achieved good prices, auctioneer Christopher Burge admitted afterwards: "It seems remarkable you can even sell anything. We are in what is obviously a very difficult financial situation for the world.''

Only 56 out of 82 lots were sold at the auction, which raised $147million (£93.6million) against a predicted $247million (£157.4million).

The sale comes after a Sotheby's auction on Monday failed to reach its low estimate of $339million (£216million), realising only $223million (£142million).

And on Wednesday night, the first half of the Christies "Modern Age" sale raised $447million (£285million) against an estimated $100million-$150million (£63.7million-£95.7million). Works by normally collectable artists such as Mark Rothko and Edouard Manet were withdrawn from the Christies sale after failing to meet their reserve prices.

Auction houses are struggling with reserve prices which were negotiated with sellers in the summer when the market was still buoyant. "Obviously in the future we will have to lower estimates," said Mr Burge.

Of the works that sold last night, only 11 paintings exceeded their estimates - although Christies said this indicated that a few buyers were still in the market.

Juan Gris's "Livre, pipe et verre" (1915) sold for $20.8million (£13.2million), well above its forecast price of $12.5million to $18.5million (£7.9million-£11.8million) and Kandinsky's "Improvisation" sold for $17million (£10.8million), against a possible $15million-$20million.

Picasso's "Deux personnages" sold for $18million (£11.4million), at the bottom end of expectations, which some had put as high as $25million (£15.9million).

However, two Picassos that were among the top lots at £9.5million-£12.7million and £6.3million-£9.5million were withdrawn after failing to get near their low estimates. Among the other disappointments were "Pont d'Argenteuil et la Seine" by Gustave Caillebott, which sold for $8.4million (£5.37million), its lowest estimate, and a Giacometti sculpture, which went for $11.5million (£7.3million), below the $14million (£8.9million) estimate.

The art world will be nervous over sales due next week of modern and post-war art, the area which has seen some of the biggest price rises in recent years.