A spring breeze is blowing in the golf membership market, which has been on a steep decline. After bottoming out at the end of last year, golf courses in the metropolitan area, which are relatively undervalued, are on the rise. Analysts say that after the rush sale, which had been pouring in due to concerns about the economic downturn, was digested to some extent, end users started to buy memberships.
End-users flock to the metropolitan area and low-endThe average index of ‘ACEPI (Golf Club Membership Comprehensive Index)’ in February, which was released on the 5th by Ace Membership Exchange, the largest golf course membership exchange in Korea, is 1221. After hitting the bottom at 1190 in December last year, it rebounded to 1202 last month and continued its upward trend for the second month.
It fell far short of the previous peak, August last year (1346), but recovered to the level of January last year (1251). This index quantifies the level of fluctuation every month with the base point (1000) of the membership prices of all domestic golf courses ascertained on January 1, 2005.
The recent rise in prices has been driven by mid- to low-priced memberships in the metropolitan area, ranging from 200 million to 500 million won. After being traded for 270 million won in February last year, Freedom CC, which has maintained a mid-200 million won level, recently traded at 280 million won and recorded a reported price. Giheung CC, which was traded at 219 million won in December last year, rose to 241.66 million won. Jisan CC in the early 300 million won and Taekwang CC in the late 100 million won were also changed hands at prices that rose by 10 to 25 million won from the previous month. Lee Hyun-kyun, head of the Ace Membership Headquarters, said, “There was a clear trend of price decline as rush sales poured in since August of last year, but the situation is changing as the rush sales are sorted out.” 바카라
Raising the price of golf memberships at the height of Corona 19 was an investment aimed at profit. This means that there was a lot of demand from companies and individuals who used golf memberships as investment targets such as stocks and real estate. The industry understands that most recent buyers are end users. Director Lee analyzed, “As the decline in asset value due to the rise in interest rates has subsided, end-users who have been waiting for the ‘timing to buy’ seem to be taking action.”
It is said that the Act on the Installation and Use of Sports Facilities introduced this year (Chesi Law) also contributed to the rise in membership prices. According to the new tax law, existing public golf courses are divided into ‘public golf courses’, which receive tax benefits as they are now, but the green fee must be lowered as required by the government, and ‘non-member golf courses’, which do not receive tax benefits but allow free setting of green fees. do.
If this happens, provincial golf courses with relatively cheap green fees will remain popular, but many golf courses in the metropolitan area that have spent a lot of money on golf courses are likely to switch to non-membership systems as they cannot afford to lower green fees. This means that the green fee at golf courses in the metropolitan area is highly likely to rise. An official at a membership golf course in the metropolitan area said, “As the public and non-member golf clubs are prohibited from issuing similar memberships according to the Chesi Act, there are not a few golfers who say, ‘Let’s secure a membership at a reasonable price’.”
“The bottom has been laid”, and the high-priced membership is also squirmingThere are signs of a rebound in high-priced memberships, which led the decline in membership prices since August of last year. East Valley CC is a representative example. After peaking at 2.3 billion won in June last year, it fell to 1.55 billion won at the end of last year.
The transaction was recently concluded at 1.78 billion won, up by 280 million won. Namchon CC, which was traded at 2.25 billion won in August of last year and dropped to 1.5 billion won at the end of last year, was traded at 1.85 billion won this month, and Volcano CC membership, which sold for 770 million won at the end of last year, recovered 900 million won.
An industry insider said, “For a while, expensive memberships did not lead to actual transactions, but the transaction was concluded as inquiries for purchase increased from the end of last year.” It is an explanation that he decided to buy the stock after judging that demand, which had been watching the market since last summer, had bottomed out to some extent. There is also an analysis that the increase in membership is a signal that the golf market this year may be better than expected. Director Lee said, “If end-users are looking for memberships, doesn’t that mean that there are that many people who think that there is a possibility that ‘golf booking’ will continue this year as well?”
However, it is still winter at the local golf course. The Chungcheong region, which rose the most during Corona 19, continues to remain flat. Memberships in Jeju Island, which fell as overseas golf tours resumed, are not jumping from last year’s end-of-year prices.