SINGAPORE โ Invest in a piece of high-value Singapore art from just $1,000, and reap the profitsย when it is sold for a higher price on the art market under a new fractional art ownership scheme.
We Are Art Collectors (WAAC), founded by accountant-turned-art gallery owner Low Sok Leng, has launched the first such collective ownership programme in Singapore.
The model divides the value of physical works by renowned Singaporean artists into smaller, tradable lots, which people can buy and sell. A $10,000 painting, for instance, would have 10 lots and a maximum of 10 owners.
Ms Low, daughter of second-generation Singapore artist Low Hai Hong, will decide which works to put up for fractionalisation and when best to sell them to generate the most money.
They will be stored and managed by WAAC, though there will soon be a rental programme, where lot owners or a third party can temporarily display the works in their homes.
Ms Low, who started art gallery Artualize in 2020 after her fatherโs death, says the scheme should appeal particularly to young investors.
โThey are eager to be part of the vibrant art investment scene, but are held back by the high cost of buying art and lack of knowledge in this specialised market. This makes Singapore art accessible and affordable to ordinary Singaporeans.โ
The lot system and its relatively low cost allow investors to split funds across multiple artworks, diversifying risk. Ms Low expects that this flexibility will help the scheme attract at least 1,000 investors within the year.
An initial batch of six works up for fractional ownership are now displayed at Artualize in North Bridge Road, comprising oil paintings by second-generation Nanyang artists Koeh Sia Yong and Low Hai Hong.
For example, Lowโs Wayang Kulit (No. 11), painted in 2000, has an estimated market value of $33,000 to $35,000, but is being offered to investors at $24,000 in 24 lots.
On how the scheme will benefit the Singapore art scene, Ms Low says she hopes fractional ownership will be an easy start for investors and encourage them to explore other art and artists.
It could also spark an ambition in fractional owners of art to eventually own whole pieces that they can take home. โThe Singapore art market is now limited to a narrow pool of collectors and general interest is also limited. With this, we can open up the market.โ
There is a one-time WAAC membership fee of $1,000. People can sign up for free talks on fractional art ownership via WhatsApp on 9638-5958 or e-mail admin@waac.com.sg.
Fractional art investment took off in the 2020s internationally, allowing young professionals to hold stakes in works by blue-chip artists including David Hockney and Yayoi Kusama.
In 2023, art market research firm ArtTactic estimated that over US$625 million (S$856 million) of art had been sold fractionally between 2017 and 2022, with the trend gaining momentum in mature markets like the United States and South Korea.
Success for investors in large part depends on the discernment of the person running the scheme, who must be alert to art market conditions and trends, as well as the state of preservation of works.
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