It is the only sector that posted double-digit growth with an 11% price increase.
Art is the best-performing luxury asset class globally with an 11% increase in price in 2023, with the sector also the most popular investment of passion in Hong Kong, along with watches.
The Knight Frank Luxury Investment Index (KFLII) dropped by 1%, with only the art sector recording a double-digit growth. However, most of the gains were only in the first half of the year.
“In 2023, the major auction houses achieved a string of record-breaking sales. It sounds like a bumper year for luxury investments, however, the KFLII reveals a less positive picture,” KFLII Editor Andrew Shirley said.
“KFLII edged into negative year-end territory in 2023, albeit by a fraction of a percent, as several stalwart members of the index dropped into the red or showed minimal gains,” Shirley added.
Art is followed by jewellery with an 8% increase, watches with 5% growth, coins with 4%, colour diamonds with 2%, and wine with 2%.
ALSO READ: Established brands in APAC remain resilient amidst emerging competition: report
On the other hand, furniture prices were down 2%, handbags by 4%, and cars by 6%, with rare whisky as the worst performer with a 9% decline.
Meanwhile, in Hong Kong, the primary motivation behind investing in art and watching is the “pleasure of ownership.”
“This growing interest in art spans across Asia, with an increasing number of affluent individuals recognising art as an alternative investment in Hong Kong. We expect the demand for fine art especially blue-chip art, to continue growing in 2024 among collectors and investors,” said Ho-Pin Tung, Director and Head of Private Office, Knight Frank Hong Kong.
