Busy on the Golf Course
As we all know, 2020 was dominated by COVID-19; it disrupted everyone’s life, whether it directly affected their, or their family’s health. From a business perspective, people lost their jobs, companies went into receivership, and some have closed completely.
While golf was a restricted activity during the lock down, clubs have been allowed to reopen, and the demand for bookings has become a significant challenge. More people are playing golf more often as it is a relatively safe outdoor activity, and one cannot really take overseas holidays. This includes both existing members play more often, and new members joining to enjoy a safe sporting activity. These new members are often playing more than the members who sold to them previously did.
We have even seen people buying memberships at additional clubs to gain access to more courses and booking opportunities.
Sentosa has seen the biggest price jump, followed by SICC, Laguna and TMCC.
While there have been no new land leases signed, we will see some clubs close at the end of 2021 as existing leases expire. Other clubs have leases that expire in 2023, 2030 or 2040, and we expect that the clubs with the longest confirm leases and multiple courses to see the strongest growth in demand. It is important to remember that we cannot predict whether any club with an expiring lease will be offered a renewal, and if offered a renewal, what the terms will be. All buyers should keep this in mind when deciding to buy a membership at any club, and judge the value accordingly! If you do so, you will not be disappointed, and most importantly, enjoy your golfing with friends!