At the Philippines' Manila Golf and Country Club, the downward spiral has been even steeper, with no relief in sight. Before investing in a golf-club membership, potential buyers need to consider a number of factors. Economic conditions certainly have an impact on prices, but so do management policies, land values, a club's reputation, and, of course, its location. One might assume that the 40 or so golf clubs that have sprung up in and around China's Guangdong province over the last decade would have posed stiff competition for Hong Kong, which has only four private clubs and one public golf course. But despite generally lower membership costs in China, that hasn't happened.
Location is very important.
Some clubs in China are too far away. Another point to bear in mind is that some clubs impose restrictions on how their memberships are sold on the secondary market. Individual memberships cannot be transferred. It's also important to determine if extra costs, such as transfer fees and brokers' commissions, are included in the quoted price. It's not a short-term investment because of the transfer fees.