Tuesday 11 November 2008

Golf memberships at 18-month low


If you have been eyeing that golf club membership for a while, now may be the time to pounce. Then again, maybe not.

1 comment:

Guanyu said...

Golf memberships at 18-month low

By VEN SREENIVASAN
10 November 2008

If you have been eyeing that golf club membership for a while, now may be the time to pounce. Then again, maybe not.

The open market prices for golf club memberships in Singapore have sunk to their lowest level in 18 months. And industry insiders believe that the bottom is still some way ahead.

The BT Golf Index, which tracks the composite price of a basket of clubs, has fallen 30 points over the past month to 162.8 points.

Dragging the index down were falls by leading clubs such as the Singapore Island Country Club, whose open market price is now quoted at $160,000. In fact, at least two transactions are said to have been done at or around $150,000 over the past month.

Meanwhile, erstwhile high-flying Sentosa Golf Club - which last year saw memberships change hands at $300,000 - has sunk to $180,000, while the beautiful Tanah Merah is struggling to keep its head above $130,000.

The price of memberships for smaller clubs like Warren, Keppel and Changi have fallen to their lowest since December 2006. You can pick up a membership at the rustic 9-hole Changi for just $7,000 now.

But if you are contemplating putting some good money down for a piece of the greens, you might want to think again. Membership brokers say that rising unemployment and increasing repatriations of expatriates - particularly in the financial sector - could put further downward pressure on prices.

‘Transactions have already fallen and no one really wants to cough up this kind of money on clubs right now,’ said one broker who preferred not to be named. ‘Meanwhile we are going to see more supply hit the market as expatriates and people from the financial sector cash out.’

All in all, not a very good picture for clubs. But a great deal if you have the money and the patience to pick a deal.

Oh, what a difference a year makes. . .