Two major auction houses and one important estate–the Eastaugh Collection–test the art market in Australia next week. The Australian handicaps the event:

The tough economic climate has forced the three auction houses involved — Sotheby’s, Deutscher and Hackett, and Bonhams and Goodman — to lower their price estimates by 20-30 per cent from this time last year. And many high-quality works have been listed, which suggests some nervous collectors have decided to bail out while there’s still some energy left in the market. [ . . . ]

Despite the recession, auction houses have spared no expense on marketing, publicity, viewing cocktail parties and glossy catalogues. But despite the lure of artists such as Tom Roberts, Arthur Streeton, John Peter Russell, Fredrick McCubbin, Lloyd Rees, Russell Drysdale, Sidney Nolan and John Olsen, they still hold fears about achieving 60 per cent-plus clearance rates.  [ . . . ]

“I don’t usually get excited about stuff, but there are some bloody great pictures out there,” said Sydney art adviser David Hulme. “There are people out there who are interested in picking up a bargain, and who see art as being a tangible investment. They may have been burnt in other areas like the share market, but a painting is something they can hold on to and no one is going to take 50 per cent of it away.”

Art Market Jitters a Bonus for Collectors with a Yen for Bargains (The Australian)