Prices of premium club shares continue to soar high nowadays. Four of the top clubs proves this to be right.
The Manila Golf Club has been the leading indicator for share value, being one of the most sought after clubs in the Philippines. Located in the prime Forbes Park subdivision it is the most prestigious club in the Philippines.  Based on the recent auction held last April 25, Manila Golf individual shares significantly increased by 32% from P13.5M in February 2007 to P17.8, while Manila Golf corporate shares increased by 34% from P14.7M to P19.7M. Both prices are exclusive of transfer fees.
The increase in price of Manila Golf share may be attributed to several factors. One, the on-going renovation and improvement made by the club to their golf course created a positive perception that will definitely result in a better golf course.
The opening from the renovation is very much anticipated by the members and shareholders.  There was an outpour of clients wanting to purchase a share, leading to an increase in demand.  However, there was a scarcity of available sellers in the secondary market to answer this demand. Manila Golf held an auction for two shares only. A lot of interested buyers took advantage of this. The bidders responded positively to the auction.  With only one individual and one corporate share to bid for, the starting bid price for the individual share was at P15M (set by the club) and closed at a whopping P17.8M while the corporate share started at P16M and closed at an even more astounding P19.7M.
Manila Golf Club’s current standpoint creates quite a positive outlook for them this year. Their share values based on the auction prices puts their real estate value at an effective price of P27,350.00 per square meter, which is still 45.3% away from the P50,000.00 per square meter current real estate value of the neighboring Forbes Park village.  The way it looks, this gives Manila Golf a promising opportunity for increase in share price. Based on the current trend they just might be able to achieve more or less 50% of their market price achieved during their golden years, which is about P46.0-48.0M.

Similar with Manila Golf, clubs like Manila Polo Club, Wack Wack Golf Club and Sta. Elena Golf Club have also significantly appreciated in value since the beginning of the year. These mentioned clubs also have a scarcity of sellers but have a pool of interested buyers, being in the list of highly demanded club shares.  These shares steadily indicate a positive real estate value as illustrated in the table below:

Indicative Real Estate Values

Share	Market Value		% change	All Time High	# Of Shares	Land Area (sqm)	Price / sqm	Current Real Estate Value
	Feb ‘07	May ‘07
Manila Polo	2.80	3.30	17.85%	7.90	2,200	250K	29,040	50,000
Wack Wack	7.50	8.20	9.33%	26.00	840	1.15M	5,990	35,000
Sta. Elena “A”	1.50	1.75	16.67%	6.50	750	1.2M	2,010	12,000
Sta. Elena “B”	1.95	2.2	12.82%		500

Manila Polo Club located nearby Manila Golf Club is currently at P3.3M, and the present real estate value of this share is P29,040.00 per square meter which is still 41.92% away from the P50,000.00 per square meter real estate value of the properties in Forbes Park.
Wack-Wack Golf and Country Club also continues to increase. With the shares selling at P8.2M, 9.33% higher than its P7.5M value last February 2007, its effective price per square meter is P5,989.57 which is 82.9% away from the current real estate value of properties within Wack-Wack  which is P35,000.00 per square meter.
Market value for Sta. Elena Golf and Country Club ‘A’ shares sells at P1.75M and increased by 16.67% from its February 2007 share value while ‘B’ shares sell at P2.2M and also increased by 12.82%. Real estate values in developed subdivisions in Sta. Rosa, like Ayala Westgrove or Sta. Elena’s own Banahaw Village is estimated between P10,000 -12,000.00 per square meter while the current effective price per square meter of the club is pegged at P2,010.42 per square meter. Putting this into consideration, Sta. Elena has all the possibilities of gaining higher market value in the future.
Of course real estate values, comparative price levels, and current developments in the clubs are not the only factors in determining the future direction of club share prices. You have such things as management and member satisfaction, financial viability, perception of the developers of the clubs where these developers are still very much visible and active, and the general economic and political environment, especially with the elections just held.
But the recent price behavior of the premium clubs does say a lot about the market’s sentiment and the renewed enthusiasm about owning club shares. In fact compared to last year our volume of purchases of shares from January to April increased by 14%. With these clubs leading the way expect most of the other clubs prices to experience resurgence, if not a significant appreciation in price.  In fact a lot of them already have.

So it could be the best time to buy golf shares again for a dual purpose. One is for you and the family’s enjoyment of the courses and the facilities and amenities offered, the other for a profitable investment.  During its heyday most people bought for investment. When the market turned sour only the end-users bought or leased club shares. Today it just might be a profitable use for you!