The building structure is expected to be completed up to the roof level by August 2022, along with other architectural, mechanical and electrical works. The interior fittings will then progress from August onwards. Barring unforeseen circumstances, SICC expects to welcome guests early next year.
]]>As a result of this demand for golf, the price for memberships at most clubs is likely to rise in 2022. The club with the highest interest continues to be Sentosa Golf Club, where memberships keep appreciating due to a shortage of sellers.
SICC also saw high membership price increases, peaking at $300K last year. With Keppel taking over the SICC Sime course, we can anticipate disruptions as more golfers compete for parking, the driving range and F&B. This crowding is expected to continue until SICC’s new social club house opens at the end of 2022 or 2023. However, those facilities and the newly opened three 9-hole courses at the New Course, should help the value of these memberships to rise.
TMCC is gradually appreciating in value as well. It is a club which offers good value for golfers seeking new memberships. Laguna Golf Club memberships are also in demand due to its immaculate courses, country club facilities and luxurious hotel accommodations. Seletar, Warren and OCC continue to experience high interest, with a steady exchange of memberships sales.
For those seeking to purchase memberships in 2022, prices will continue to be much higher than in pre-pandemic times due to limited availability. We recommend that individuals consider carefully before purchasing new memberships due to the inflated prices. Golfers can pay to play at public courses and with friends who are members at the various clubs, allowing for time to evaluate the pros and cons of membership. We anticipate prices of memberships will stabilize if borders stay open and restrictions are eased. Also, as golfers venture overseas to play, demand for local golfing flights should ease, making it easier for everyone to play more games.
Please visit the various club websites for more detailed information on their courses and facilities.
Singolf wishes everyone good golfing in the year ahead. Enjoy your friendships, take care and keep your masks on!
]]>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!
]]>As with all aspects of life, the COVID-19 pandemic has disrupted the golf scene in Singapore, as all clubs were closed during the circuit breaker period, and the volume of membership transactions fell off, unsurprisingly.
When restrictions moved to phase 2, and golf clubs were allowed to reopen, we saw large numbers of golfers rushing back to play. Due to the restrictions on the number of players in a flight, to maintain social distancing, courses are being fully booked on a regular basis.
Despite that, the volume of membership transactions has increased and prices are appreciating. It is likely that the fact that golf is a sport that can continue with relatively little disruption contributes to the increased demand.
There have been no changes to the land leases since the last set of renewals up to 2040.
]]>Some clubs were offered new leases for their current land, others were offered new leases for only part of their land, and other clubs were not offered new leases at all or were told that they would only get one new lease and no further extensions.
If you would like to enquire about the specifics of a particular club, and the impact on membership sales, please contact us.
Golf Club | Current Lease Expiry | Offered Lease |
---|---|---|
Keppel Club | 31 Dec 2021 | No new lease will be offered |
Singapore Island Country Club | 31 Dec 2021 | Island Location: 31 Dec 2040 Bukit Course: 31 Dec 2030 Sime Course: No new lease offered |
Sentosa Golf Club | 31 Dec 2021 | Serapong Course: 31 Dec 2030 Tanjong Course: 31 Dec 2040 |
Changi Golf Club | 31 Dec 2021 | 31 Dec 2040 |
Tanah Merah Country Club | 31 Dec 2021 | Garden Course: 31 Dec 2035 (with reduced area) Tampines Course: 31 Dec 2040 |
Seletar Country Club | 31 Dec 2021 | 31 Dec 2040 |
Orchid Country Club | 31 Dec 2023 | 31 Dec 2030 No new lease thereafter |
National Service Resort, (Changi) | 31 Dec 2023 | 31 Dec 2040 (with reduced area) |
National Service Resort, (Kranji) | 26 Sep 2030 | No new lease offered yet |
Warren Golf & Country Club | 30 Oct 2030 | No new lease offered yet |
Laguna National Golf & Country Club | 15 Dec 2040 | No new lease offered yet |
Like the property market, there is no central body like the SGX which guarantees delivery and payment to the transacting parties. It is important therefore for each party to ensure their interest is protected during the transaction process. A good broker will structure the transaction to minimise risk for each party.
Also, in contrast to a stock exchange, there is no published comprehensive price information. Brokers generally have a fair knowledge of the market but should not be uncritically relied upon. To get a feel for the current accessible price, talk to a few brokers as a prospective buyer; ask also about prices for comparable clubs. This will help you gauge the appropriate price for the club you are interested in. Transaction volumes are of course tiny compared with a stock exchange. However regular market participants have a good feel for realistic prices.
Don’t expect to buy or sell way off the market price. The other person is also doing their research before committing to a deal!
Sellers should appoint just one agent to find a buyer. If you give the deal to several agents, prospective buyers may perceive that there are several memberships of that club for sale, thus weakening the market against you. Your sales agent will co-broke with other agents to find a buyer. To monitor the market price, scan the newspaper ads and call around as a buyer to enquire.
Also, don’t bargain for a very low sales commission. You want to be the seller who gets the broker’s first attention for the best deal.
Buyers beware! Brokers sometimes quote unrealistic prices to get a prospective buyer on the hook. If you are quoted a low price, ask if there is an actual seller, then insist on completing the deal immediately.
DON’T sign any contract of exclusivity to buy with a broker. Such a contract is not to your advantage; if the broker has a seller, they don’t need exclusivity. If they haven’t, you don’t want to be kept out of the market whilst the broker finds one!
As to timing, the membership market works like all other markets. When prices are down, volumes decline as buyers hold back awaiting even lower prices, whilst owners hold back from selling. The result is that very few people buy their membership when prices are low. The largest volume of transactions is when prices are high.
The best time to buy is when the market is low and volumes are low. Your broker can tell you when transaction volumes are low; the membership department staff of the clubs may also be able to help here. The market may go lower, but once sentiment begins to turn and buyers realise that prices are rising, they can go up very sharply.
]]>The golf membership prices are driven by, and therefore reflect, supply and demand. The Price Charts on our website are thus self-explanatory. Admittedly the charts cover only three clubs, SICC, Sentosa and TMCC. Nevertheless, we believe they more or less mirror the overall landscape.
The young and upwardly mobile tend to gravitate towards the more prestigious clubs.
On the other hand, the older generation of members are selling their memberships. The realisable prices for the prestigious club memberships are more useful and valuable to them in their old age than merely holding on to their memberships, which also attract the compulsory monthly fees regardless of usage.
8 April 2017 was the closing date for payment of the top-up contribution fee ($19,000 + GST). Members who paid the fee would have their club memberships extended to 31/12/2040. Those who did not pay the fee will have their club membership terminated on the expiry date of both the Garden and Tampines sites which is 31/12/2021.
The price of TMCC is expected to reflect the top-up contribution fee component.
The Club is renovating its Tampines Course. When completed and open for play, its memberships are expected to improve in value.
The price of Sentosa appreciated because of the completion of the newly renovated Tanjong Course which is now open for play.
Sentosa caters to the golfer. The price is higher in spite of its lack of social facilities. This is because the courses are always well-maintained and in top condition.
Still, the club of choice because of its social and country club facilities for the whole family.
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