As the new year begins, the art world is gearing up for a run of major auctions in London, New York, and Hong Kong – and it is also a moment when auction houses often revisit their fee structures.
Sotheby’s has announced changes to its buyer’s premium with two main effects. First, it has raised the upper limit of the lowest hammer-price tier – by between 60% and 105%, depending on location. Second, the rate charged on that lowest tier has increased from 27% to 28%.
The new schedule came into effect on 13 February. The Value has set out the details below for reference.
Increases to the Lowest-Tier Ceiling (Highest to Lowest):
- Paris / Milan / Cologne | From €850,000 to €1.75 million (105%)
- Hong Kong | From HK$7.5 million to HK$15 million (100%)
- New York / United Arab Emirates / Kingdom of Saudi Arabia | From US$1 million to US$2 million (100%)
- London | From £800,000 to £1.5 million (87.5%)
- Singapore | SG$1.5 million to SG$2.6 million (73%)
- Geneva | From CHF 1 million to CHF 1.6 million (60%)
In percentage terms, the most pronounced impact falls on lots that hammer within the newly expanded bands. At last year’s single‑owner sale, Masterpieces of Asian Art from the Okada Museum of Art, an extremely rare Sui-Tang transparent-glazed “parrot cup” hammered at HK$14.6 million. Under the previous structure, the buyer’s premium came to HK$3.587 million; under the new schedule, it would be HK$4.088 million – an increase of around 14%.
By contrast, at the top end the change is comparatively marginal. In last autumn’s sales, Yoshitomo Nara’s Can’t Wait ’til the Night Comes hammered at HK$65.5 million. The buyer’s premium was HK$14.4 million; under the revised schedule it would be HK$14.925 million, an increase of roughly 3.6%.
Xibo Wang (Head of the Chinese Ceramics and Works of Art department, Hong Kong) with the "parrot" cup
Yoshitomo Nara's Can't Wait 'til the Night Comes sold for HK$79.9 million last year
Buyer’s premium remains a crucial revenue stream for auction houses, and in recent years the industry has tested different ways of balancing higher income with client appeal.
In 2024, Sotheby’s not only reduced buyer’s premium across the board, but also – in an unprecedented move – made its seller fees public, prompting widespread debate. Yet just a year later, in 2025, the house effectively reversed course, returning to a more traditional structure.
Another international auction house, Phillips, introduced an “early-bird” incentive last year: buyers who submit a written bid at or above the low estimate at least 48 hours before the sale pay a reduced buyer’s premium.