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Morning Studio editors

[Sponsored article]
Hong Kong’s reputation as a leading international centre for arts and culture has been given a tremendous boost with the development of world-class performance venues, museums and exhibition spaces at the West Kowloon Cultural District.
Tourists and local residents now flock to the 40 hectare (99 acre), wedge-shaped cultural hub, built on reclaimed land beside Victoria Harbour, to the west of Yau Ma Tei – which includes Hong Kong Palace Museum, the Xiqu Centre for Chinese opera, Freespace centre for contemporary performance, and M+, the city’s global museum of visual culture – to enjoy music, theatre, traditional artworks, and marvel at the dynastic treasures of ancient China.

However, the district is also home to another enterprise which attracts crowds, generates excitement, projects glamour – and has done much to cement the city’s reputation as an Asian hub for fine art collectors and connoisseurs.
“There is a certain type of energy that is created at an auction.” says Jonathan Crockett, Asia chairman of the auction house Phillips, which has relocated its regional headquarters to the cultural district. “One can never predict how far someone is going to bid.”
The purpose-built 52,000 sq ft premises, which are intended to complement its sales offices in New York, Geneva and London, are spread across six floors and include permanent galleries, a saleroom and an office.

The space was designed by Herzog & de Meuron – the Swiss architectural practice that designed the much-acclaimed, T-shaped M+ nearby – and Hong Kong’s LAAB Architects.
The main areas opened in March with an exhibition of 20th-century and contemporary art, design, timepieces and jewellery, carefully timed to coincide with the always popular Hong Kong Art Week.
“We have developed a reputation for being the [auction] house that introduces new names to the Asian market.” Crockett says. “This is the first time any auction house in Hong Kong has ever had a permanent exhibition space and an auction room.”
These advantages will help Phillips to take its own business to the next level and also add significant impetus to the broader drive to promote the cultural and creative industries – an economic initiative which has really taken off in the past few years.

Official figures compiled for 2021 show the total value of Hong Kong’s trade in artworks, collectors’ items and antiques reached HK$66.6 billion (US$8 billion). This was about four times higher than the equivalent figure for 2017.
As the art auction market has continued to grow, the city has come to be seen as a genuine rival for long-established centres such as London and New York.
“Unlike many of its international counterparts, Hong Kong serves not just the local art community, but also acts as the main pan-Asian hub for the trade in art,” Crockett says.
“The city is on the doorstep of mainland China, the world’s second-largest economy. The legal system here is robust; there are world-class logistics companies; and the infrastructure is in place to serve an auction market.”

Originally founded in London in 1796, where one of its early deals involved selling Marie Antoinette’s paintings, Phillips has moved fast since first setting up its local operation eight years ago.
Phillips’ initial six-strong team expanded rapidly, and in 2021 made a significant contribution to the company’s total reported sales of HK$2.1 billion, which was close to double the previous year’s total.
The Covid-19 pandemic presented obvious challenges, but Hong Kong remained resilient and suffered only a mild setback of a 2 per cent drop in 2020 – substantially less than the double-digit declines in New York and London. This enabled Hong Kong to overtake the UK capital as the world’s second-largest art auction market for the first time, and it maintained the lead in 2021.
For Phillips, it also brought opportunities to develop online auctions and establish a wider network within the vibrant and growing community of art enthusiasts in China’s Guangdong-Hong Kong-Macau Greater Bay Area development zone, which includes the cities of Hong Kong, Macau, Guangzhou and Shenzhen.
As a result, the company is now viewed as a leading platform for buying and selling 20th- and 21st-century collectibles, while also consulting for museums and advising private estates and companies on offers, appraisals and valuations.

However, Phillips is also looking to capitalise on new synergies within the cultural district. One recent example was the successful March 30 sale of Yayoi Kusama’s acrylic painting, Pumpkin, which went for HK$56 million – one of the highest-ever values achieved for one of her works at auction. The sale coincided with a large-scale exhibition of the Japanese contemporary artist’s work at M+.
“The city is home to international galleries, auction houses and art fairs,” Crockett says. “With the opening of world-class venues, such as M+ and the Hong Kong Palace Museum [in West Kowloon Cultural District], we can attract art lovers from around the globe. In particular, the advent of mainland Chinese buyers is drawing people to the city’s art trading events, so we are positive about achieving remarkable growth in Asia.”

InvestHK – the government agency responsible for supporting mainland Chinese and overseas businesses that wish to set up, or expand their presence, in the city – works by helping to boost foreign direct investment, which is crucial in supporting new industries and spurring economic expansion.
It works with companies ranging from start-ups and small and medium-sized enterprises (SMEs) to leading multinationals, promoting Hong Kong’s numerous advantages as a top location for building a business in Asia.
In the case of Phillips, that would have meant highlighting the city’s straightforward and competitive tax system, its zero tariff on art trading, the abolition of estate duty in 2006, and the almost unlimited potential for further development as one of the world’s major auction centres.
“We are constantly looking at ways to advance and grow our business across the region,” Crockett says. “I would like us to be market leaders in all the categories we operate in at some point in the near future.”


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InvestHK

Auction house Phillips cements Hong Kong’s place as Asia’s arts hub with new West Kowloon headquarters that features permanent galleries and saleroom

Auction house Phillips’ new six-storey Asian headquarters opened in March at Hong Kong’s West Kowloon Cultural District.

Jonathan Crockett, Asia chairman of the auction house Phillips, which is regarded in the region as a leading platform for buying and selling 20th- and 21st-century collectibles.

Hong Kong Palace Museum is one of the many cultural attractions at Hong Kong’s West Kowloon Cultural District, located beside Victoria Harbour. Photo: Shutterstock

Jonathan Crockett, Asia chairman of the auction house Phillips, says Hong Kong is the main pan-Asian hub for the trade in art.

Auction house Phillips opened its first Hong Kong office eight years ago with help from InvestHK, which supports mainland Chinese and overseas businesses as they set up, or expand their presence, in the city. Photo: Shutterstock

The giant illuminated M+ Facade at M+, Hong Kong’s global museum of visual culture – with the skyscraper International Commerce Centre behind – in West Kowloon Cultural District. Photo: Shutterstock

A selection of 20th century and contemporary art on display in one of the permanent galleries at auction house Phillips’ new Asian headquarters in Hong Kong.

Business

Purpose-built, six-storey premises, located beside world-class M+ museum, can help firm capitalise on new synergies within the waterfront cultural district
Company’s expansion supported by the government body InvestHK, which helps mainland Chinese and overseas businesses keen to relocate to city – or expand their presence


Purpose-built, six-storey premises, located beside world-class M+ museum, can help firm capitalise on new synergies within the waterfront cultural district.
