2024 saw the leveling of the Philippine art market, according to Ramon E. S. “Richie” Lerma, the CEO and chief specialist of the pioneering Salcedo Auctions. By that he means that the highly active local art market is seeing the corrections of art prices, vis a vis the demand for the art pieces, their supply, and the growing awareness of collectors.
In a way, he said, this could be a sign of the growing maturity of the local art market.
This is the second in a series of video interviews by TheDiarist.ph.
How was 2024 for art auction in the Philippines?
Well, 2024 was a time for… how should we say this…. a leveling of the art market. I think there were some corrections that were made price-wise, which I think is very good. I think that over the past few years, there have been some increases in the market that I believe needed to be more fully studied and more fully understood. And I think the market has been able to get a clearer picture of where things are. I think the prices this year are reflective of that.
There were artists whose prices climbed even further, and there were some artists, of course, who either stayed within the level they were selling at, or some sold a little below where they were selling before.
But that is the sign, at least at Salcedo Auctions, of a true and thriving market.
Art correction—can you be more specific?
For example, there were works by certain sculptors that climbed in price over the past two years or so. And I think given those price increases, that there has been an increase of supply in the market, with sellers enticed by the promise of excellent returns on their pieces, there would be a correction in terms of price for certain artists’ works. So supply has a lot to do with corrections in the market, a deeper knowledge of the depth of collecting works of a particular artist.
You mean some prices have been artificial?
I wouldn’t say they were artificial. I think that as a normal response to the market, in the beginning, there were only a few being made available in the auctions, and therefore, the demand for these few pieces was there, and therefore, the prices went up.
Now, when the market, of course, as in any normal market, at least here in Salcedo, seeing that more and more works by a particular artist are coming out and becoming available, some collectors would have thought that maybe I don’t need to pay as much, or I wouldn’t need to bid so much higher simply because, oh, maybe I can still have another opportunity elsewhere. And that is what is at the heart of the art market. But besides the desirability of the artist, it’s also the amount or number of works by a particular artist being made available.
What caused this correction, primarily? Do you think it’s because of a market maturing, or its awareness increasing?
Yes. I think that any correction that happens is because of that, that growing awareness, awareness regarding the body of work of a certain artist, how many works are available, or are increasingly becoming available. There’s no greater motivation to sell than increasing prices.
But then, of course, by the time you actually enter the market, perhaps it might be a tad late, because it’s always good to be ahead of the market when it comes to selling works of art. Don’t sell when there’s already quite a number of works by the artists that are available? That’s right, yes. I think it’s the awareness through our auctions, people seeing and appreciating and believing in the results at Salcedo, that they know where the market stands.
And that’s why we are considered to be the barometer of the art market, because when people see that some pieces are increasing in value, that means there’s an increasing demand for the works of particular artist or a continued demand at a high level.
Now, if certain pieces go unsold, and that is, of course, what is to be expected in a normal market, or at least one that adheres to standards, then one gets the understanding that there are deeper forces at play when it comes to the price for art. It’s a growing maturity, I think, of the market. It’s a growing maturity.
In terms of masterpieces up for auction, do you note any shift or changes, whether in market taste or demand?
I think that what is very reassuring is that the artists who we regard as blue-chip, meaning their value will not diminish because the arts and culture scene considers them to be of utmost importance, there are hardly any major corrections there. I was speaking at one of our cocktail functions the other day, and there’s this lady collector who said that I’m very glad that I acquired works by known names, because she knew that no matter what happens, come the time she decides to unload certain pieces, there would always be a market for it.
Are these pieces of non-names or known names?
Of known names. For example, the works of National Artists. In the recent auction, the record sale of the Rosary Queen by a formidable name, Ang Kiukok, who has consistently sold well at Salcedo Auctions. There was a time his prices plateaued and went up, and now they’re scaling up again because people are really seeing the value and the rarity of those pieces that are vetted, and come to Salcedo Auctions.
Of course, the other artist who did very well in the last auction was the artist that we have, Lao Lian Ben.
The demand is consistent. Well, the supply is also consistent as well, in that the rarity of the works remains as well. The desirability remains, the reputation remains, and over time, with that increasing assessment of the artist’s importance in the Philippine art scene that continues to be reinforced, and that supports price.
