Two of the world's largest art galleries have announced the closure of their Hong Kong locations as major players reassess their global presence amid a multi-year slump in the art market. Pace Gallery and Perrotin, both internationally renowned mega galleries, will be shutting down their Hong Kong spaces but maintain they plan to reopen in the city at a future date.

Pace Gallery, which represents high-profile artists including Yoshitomo Nara, David Hockney, and the estates of Agnes Martin and Mark Rothko, will close its Central location in H Queens after seven years of operation. The closure will take effect following the end of its final exhibition by Cuban artist Alejandro Piñeiro Bello on October 18. Meanwhile, across Victoria Harbour, Perrotin has already moved out of its gallery space at K11 Atelier Victoria Dockside on October 1, ending a six-year tenure at the location.

Both companies have emphasized that they will maintain offices in Hong Kong and plan to relaunch gallery spaces in the city, though they have not provided specific timelines for these reopenings. The closures come as the global art market continues to struggle with a significant downturn that began in 2022, with 2024 seeing a 12 percent decline according to the most recent Art Basel and UBS Art Market Report.

The impact of this market slowdown is particularly visible in Hong Kong's auction market, where transactions hit an eight-year low this autumn. However, the city has largely avoided the wave of gallery closures that have affected the United States and United Kingdom, where established names like Blum & Poe, Venus Over Manhattan, and Marlborough Gallery have shut down in the past two years. According to the FindArt HK app, which monitors exhibitions across Hong Kong, the total number of commercial galleries has remained steady at around 125 since the app launched a year ago.

Marc Glimcher, chief executive of Pace Gallery and son of founder Arne Glimcher, explained that Hong Kong's importance as an art market has declined following the COVID-19 pandemic. He noted that many wealthy Chinese collectors now have homes in Japan, shifting market dynamics. "The art market is very fluid. We made our bet in Japan when we opened a gallery at Azabudai Hills in Tokyo in 2024. It paid off very well. We have seen an almost equal number of Chinese and Japanese collectors there," Glimcher told reporters.

Glimcher also cited political factors as influencing the decision, stating that the political situation in Hong Kong has not provided an inviting environment for artists. Some Chinese artists represented by Pace had previously considered moving to Hong Kong but changed their minds after the political instability of the 2019 protests and new limits on artistic expression introduced by the National Security Law. Additionally, the closure was prompted by the expiration of the lease at H Queens and the departure of Hong Kong-based president of Greater China, Evelyn Lin, after just one year at the gallery.

Lin, whose departure was described as amicable, is returning to Sotheby's where she previously worked from 1998 to 2018. She will assume the role of Asia chairman of the modern and contemporary art department, replacing Elaine Holt, who also held her position for only one year. Despite the closure, Glimcher emphasized Pace's continued commitment to the Hong Kong and Greater China market, stating, "Let me be extremely clear. We have every intention to stay in Hong Kong. We are just in the process of finding a great space that is more than just at the top of an office building."

Perrotin addressed its closure through an emailed statement, explaining that the gallery recently moved out of its K11 Atelier Victoria Dockside location at the end of a five-year contract. The French-founded gallery, which is majority-owned by a real estate investment firm, indicated it plans to return to Central district where it first established its Asian presence in 2012. "We believe this new location will better serve our community, enhance accessibility, and reduce our operational costs," the statement read.

The closures highlight challenges facing H Queens, the building that was envisioned as a premier art gallery destination seven years ago. Today, only two galleries remain in the building: David Zwirner and Tang Contemporary Art. David Zwirner expressed concerns about the building's viability in a statement: "We were concerned when Hauser & Wirth left H Queens, and with Pace's recent departure, the viability of the building to fulfill its promise as a premier arts gallery building in Hong Kong is certainly in question."

Despite these departures, some major galleries remain committed to Hong Kong. White Cube, one of the first mega galleries to establish a presence in the city, maintains its position as regional headquarters there. Wendy Xu, the gallery's Asia managing director, noted that while the art market has shifted significantly since the pandemic, they continue to see strong engagement from mainland China collectors. "Within Asia, our strongest markets remain Hong Kong and mainland China. Over the past 15 years, we've seen an extraordinary rise in collecting from mainland China, though in recent years that growth has naturally plateaued," Xu explained.

The gallery closures reflect broader challenges facing Hong Kong's art market, which has lost market share to other regions while suffering from the worst corrections in the contemporary art market since the 1990s. However, industry observers note that Hong Kong continues to serve as a vital cultural hub for the region, offering access to high-quality international exhibitions across galleries, museums, and auction houses. The temporary nature of these closures, with both galleries expressing intentions to return, suggests continued confidence in Hong Kong's long-term potential as an art market destination.