| MARKET NEWS, MAY
2006
The prices of memberships in Singapore’s premier golf clubs rose during 2005 and early 2006 together with the country’s GDP and rising values on the Stock Exchange and the property market. The price of a Local membership in Singapore Island Country Club rose from about $128,000 in early 2005 to $164,000 presently; an increase of some 28%. The price for Sentosa GC rose from $115,000 to $132,000 and for Tanah Merah CC from $85,000 to $110,000.
By contrast, the prices of some lower priced clubs have declined during the same period. Referring again to Local memberships, Raffles CC has declined from about $38,000 to $35,000 and Keppel Club from $28,000 to $22,000. One can only guess at reasons for the divergence of values, but one factor seems to be the relatively high transfer fees at the lower priced clubs. The table below sets out the relevant figures:
| Club |
Price Change |
Price at May 2006 (P) |
Transfer Fee (TF) |
% of TF over P |
| SICC |
+ 28% |
$ 164,000 |
$ 30,000 |
18% |
| SENTOSA |
+ 15% |
$ 132,000 |
$ 20,000 |
15% |
| TMCC |
+ 29% |
$ 110,000 |
$ 30,000 |
27% |
| |
|
|
|
|
| RCC |
- 8% |
$ 35,000 |
$ 20,000 |
57% |
| KEPPEL |
- 21% |
$ 22,000 |
$ 12,000 |
54% |
Some think that a high transfer fee helps to support the membership price by reducing the motivation to sell. However, the other side of this coin is that a high transfer fee means the buyer looses a big chunk of realisable value immediately after the purchase. The price changes during the past 16 months indicate that this last consideration may be having a significant effect.
News about the Clubs
The rebuilding of Tanah Merah’s championship course, the Garden, continues apace. The original Garden course was one of the best and most enjoyable tests of golf in the region and the new version can be expected to be even better. Nine holes were completed and in play by the end of 2005 and the other nine will be completed later this year. Meanwhile, the Tampines course is one of the best “second” courses in Singapore.
Sentosa’s Serapong championship course has been the venue of several big tournaments during the past year including the 2005 Singapore Open, won in masterly style by Adam Scott and, more recently, the (British) Open Championship Asian qualifying tournament. The club has plans for detailed upgrading of this course to improve its golfing challenge for the 2007 Singapore Open and also its facilities for members’ play and spectators at professional tournaments.
Sentosa is also busy renovating its Tanjong course. Play continues, subject to temporary arrangements, and work is being schedule to minimise disruption of play.The Committee has an objective to make Sentosa the most luxurious and exclusive golf club in Singapore. Two fine dining restaurants – one Japanese and one Italian now operate in the clubhouse. The upmarket Sentosa Cove residential and marina development has brought increased demand for membership at the Club and the proposed integrated resort on the island will surely create demand for golfing from many visitors.
SICC is surely one of the biggest clubs in the world, with four full golf courses, one 9 hole mainly par three training and practice course and two major locations, each with its own comprehensive country club facilities. The club’s upgrading programme continues, with plans for a new golfing clubhouse at the Island location.
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