Is investing in a golf membership a good move in Singapore?

A golf membership has always been associated with status and luxury. The COVID-19 pandemic has driven new ways and traveling has become limited. Singaporeans have been known to have golf memberships not only within the country but overseas but are these still desirable? It must be noted that since the pandemic hit, golf membership prices have increased as well going up to more nearly S$400,000 for locals and half a million for foreigners.

What should I consider in a golf club membership?

You must know what you are paying for and how much you have to pay every month. Besides that, you should also consider:

  • What your family will get to enjoy at the club?
  • Transfer fees.
  • When will the land lease expire?

How long is the club’s lease?

While it is mostly about your enjoyment of the game, your family should be able to enjoy certain facilities too. The membership would come at a cost and resale value that you must take into consideration.

What are the financial considerations involved in a golf club membership?

The most prominent fee that you must be aware of would be the membership fee. This involves the one-time initiation fee which could go as high as S$350,000. Then there is the monthly fees that you have to commit to. The transfer fee must also be taken into account where you have to know how much it will cost you to transfer the membership to someone else in the future. Take note that the transfer fee is related to the resale value of the membership. This is where the investment potential exists. The more exclusive the club is, the more limited the number of members there will be. Hence, if you have a membership at an exclusive club, there will be people looking to buy the membership from you.

You would also need to be aware that certain clubs have already closed for applications of new members as they have reached their maximum capacity. Hence, it would only make sense to buy over the membership from someone else. Some clubs charge more for the transfer of membership and this cost is usually paid by the buyer which means he will have to pay more.

How much is the transfer fees?

Depending on the club, the transfer fee ranges between S$1,000 to S$2,500.

Should I be concerned with the lease expiration of a golf club?

Yes, of course. Golf clubs are built on leased land from the government which means they have a maximum term to operate there. This will then affect the demand for membership at these clubs which then directly affects the resale value of the membership since there is a maximum year left to enjoy the club’s existence. As a note, most golf clubs in Singapore have a lease expiry of up to 2040 which means you have about 20 more years to enjoy the facilities.

So, should I invest in a golf membership?

One thing is for sure, if you are buying the membership for your personal enjoyment, then it would be a good investment on your part provided that you maximize your time there. There is no point buying a golf membership and then visiting the golf course only once a month. If you are buying it for investment, then you must really take into consideration the one-time initiation fee, monthly payments and the lease expiry of the land.

You might also enjoy