BY LIAM ARAN BARNES
Golf communities are back in vogue as the sport takes Asia by storm.
Anvaya Cove Sea Breeze Verandas
More than most sports, golf is considered a lifestyle choice and many aficionados, given the chance, would tee off on a daily basis. When Southeast Asia-based expatriate Paul Temple decided last year to go into semi-retirement, he chose to do just that.
“I’m an avid golfer so I wanted to find a property in a place where I could play all day and also spend more time relaxing and writing,” explains the 58-year-old Canadian.
After viewing properties in China, Indonesia, Thailand and Malaysia, Temple eventually opted to purchase a PHP15 million (USD343,000) condominium unit at Anvaya Cove, a mixed-use golf and leisure community located near the Philippines’ Subic Bay.
Developed by Ayala Land Premier, the luxury residential wing of the country’s largest property developer, the 470-hectare project comprises a Golfplan-designed 18-hole golf course, as well as residential components divided into nine “neighbourhoods”, with some plots overlooking the course. According to Jose Juan Jugo, head of Ayala Land Premier, Anvaya Cove, which launched a decade ago, has started to attract foreign buyers since the course opened last year.
“The golf club has really put the icing on the cake,” he says. “We anticipate further interest in this sort of investment from what we see as a global market.” Jugo adds that investment opportunities are available to foreigners and the club also runs a condominium leasing programme that allows owners to make, on average, PHP3,500 (USD80) per night.
The growing popularity of residential golf course communities is not new to the region, although talk of investment schemes and timeshares does bring back memories of the niche market’s murky past in Southeast Asia. Certain projects, especially in Thailand, which has long been the region’s premier golf destination, became renowned for their shady investment schemes, ownership issues and the occasional bankruptcy.
A famous case is the rise and demise—and possible rise again—of Phuket’s Blue Canyon Country Club. Once one of Asia’s most celebrated courses—it twice hosted tournament and gained praise from golf legends such as Tiger Woods and Greg Norman—the club has spent the past decade stumbling from one calamity to the next. The owner, Murex, went bust in 2004, lawsuits were filed and court cases have rumbled on for the past nine years. After a recent acquisition by local firm Ocean Group, however, things may be looking up.
“Compared to mature markets, like the US, where multi-million-dollar golf properties are the norm and speciality markets are established, buyers haven’t embraced golf enough to live in these often secluded estates,” says asset management and hospitality consultant Bill Barnett. “In Southeast Asia, the golf property market has been something of a basket case.”
He adds, however, that many of the less-desirable courses fell to the wayside after the ’97 Asian financial crisis and the new breed of golf communities, developed by property heavyweights, are banking on brand loyalty and additional luxuries.
Black Mountain
Indeed, in an effort to drive investment from the wider market, many in the latest wave of courses and clubhouses, like Anvaya Cove, are being integrated into larger master-planned communities and offer residents lifestyle amenities including beach clubs, adventure facilities and retail outlets. Some of the region’s leading high-end developers are also teaming up with global brands, namely Indochina Land’s collaboration with Colin Montgomerie on Danang-based property Montgomerie Links Vietnam and the DAMAC partnership with Trump Golf. The Middle East’s largest developer’s latest master development, AKOYA by DAMAC, set to comprise 7,000 residential units, will feature the first Trump-branded golf course in Asia.
Whilst Trump International Golf Course, Dubai is the company’s initial foray into Asia’s golf market, Donald Trump, president of The Trump Organization, is confident that the brand will expand its presence as the sport continues to take off around the region.
“There is tremendous potential in Asia. It’s amazing, in fact,” he says. “I think it helps to see the world as an emerging market—there are so many locations that are terrific and for many reasons I’m optimistic when it comes to expanding because we’ve experienced tremendous success.”
But a big-name collaboration is not the only recipe for success. Some smaller, yet highly reputable courses with residential components have also benefitted front the resurgent demand for golf real estate. The Thai coastal resort of Hua Hin and surrounding area is home to more than 20 courses, including the golf communities of Black Mountain and Palm Hills, both of which recently witnessed a surge in investment.
A British investor and founder of a Hua Hin-based boutique developer, who doesn’t wish to be named, purchased his first property at Palm Hills in 2002. He has since bought an additional 12 plots within the community on which he’s built three- and four-bedroom villas. During the 12-year period, the Hua Hin resident of 30 years claims land prices have significantly increased.
“Hua Hin, which has grown into one of the country’s leading golfing destinations, is an extremely active market and golf properties are selling each and every week,” he says. “When I started buying plots and developing properties, I was paying about THB3 million (USD924,000) for 1.5 rai (2,400 sqm). Nowadays the same plots are going for more than THB7 million (USD215,650).”
The investor adds that overseas buyers, many of whom use the properties as holiday homes, have had a positive impact on the local market. Furthermore, the International Association of Golf Tour Operators notes that golf tourists spend an estimated 120 percent more than average tourists and regularly purchase second homes in favoured destinations.
Montgomerie Links Vietnam
Luxury residential real estate agent Sotheby’s, which for some time has focused on global golf property, last year launched a dedicated branch to handle the specialised market. The agent oversees some of the region’s top golf course communities, including Montgomerie Links Vietnam and Blue Canyon Country Club.
Sotheby’s Vietnam-based associate director Christopher Piro agrees that whilst tourism has played a major role in the market’s renaissance, the most significant factor is the increasing affluence of regional investors from the countries such as Hong Kong, Singapore and Australia.
“Rising salaries amongst Asia’s middle-classes has had a pretty significant impact on the market and they are looking especially for property priced around the USD500,000 mark,” he explains. “This price level attracts, for example, directors from banks and other financial institutions, who are maybe making their second or third overseas investment and see golf property as an attractive alternative to more expensive real estate, with the added bonus of lifestyle amenities.”
Golf and leisure communities, both boutique and branded, will undoubtedly continue to emerge around the region to cater not only to the changing tastes of the region’ rapidly increasing middle class and the influx of international golf tourists, but to accommodate the future hub of the sport.
As HSBC’s recent report Golf’s 2020 Vision notes: “It seems only a matter of time before the centre of gravity in the game moves to Asia. Just as the popularity of cricket in India means that the sub-continent has become the economic and political centre of the sport, so we expect to see the centre of the professional golf game move towards Asia.”
ON-COURSE INVESTMENTS
VIETNAM
Montgomerie Links by Indochina Land
Montgomerie Links by Indochina Land
Rank:
No. 2 in Vietnam
The course:
Designed by golf legend Colin Montgomerie, the 18-hole par-72 course opened in 2009 and has since held a number of major tournaments such as the Asia Pacific Senior Amateur Golf Championship, APGC Senior Golf Championship and a number of corporate tournaments by the likes of BMW and Johnnie Walker. In its short history it has also picked up awards including ‘Best Golf Course in Vietnam’ at the Asia Pacific Property Awards 2010 and was voted ‘One of Asia’s Top Ten Elite Courses’ by Forbes Travel in 2012.
The residences:
Construction of The Estates at Montgomerie Links, which is located in the heart of the course, is due to be completed within the next two years. The 66 pool villas range in size from 240 sqm two-storey properties to 486 sqm three-storey homes that feature a lap pool, hot tub and two master bedrooms. Prices start from USD500,000.
The benefits:
Montgomerie Links is the only golf community in the country that offers a rental programme to overseas investors. The scheme allows owners to use the property for 90 days and lease it out for the remainder of the year through the community’s in-house operations team. Returns during the initial phase are estimated to be between one to two percent and all property owners receive a complementary Family Golf Membership.
“This is an exciting area, Vietnam, especially this particular region, Central Coast, the historical nature of it and what we can do here… To find a course site like this these days is very rare.” —Collin Montgomerie, eight-time winner of the European Tour Order of Merit and course designer.
MALAYSIA
Kuala Lumpur Golf & Country Club by Sime Darby
Kuala Lumpur Golf & Country Club by Sime Darby
Rank:
No. 1 in Malaysia
The course:
The club features two 18-hole courses—the international championship par 72 and wetlands-themed par 71 East Course—both of which have hosted established local tournaments, namely the Maybank Malaysian Open and Sime Darby LPGA. The club has also received several awards including Asian Golf Monthly’s ‘Best Golf Course in Asia Pacific’ for two consecutive years and was rated the fifth best course in the world by European Tour’s green-keeping consultant Eddie Addams.
The residences:
Located close to the fairway on the East Course, KLCC’s East Residence comprises a total of 118 units set across four- and five-storey condo buildings. Each property been designed with a staggered courtyard and open plan interior to capitalise on the views of the course. Prices start from about USD2,863 per sqm.
The benefits:
Certain packages offer investors free Legal Fee for Sale & Purchase Agreement and free stamp duty on memorandum of transfer and loan documents. Ownership also comes with a complimentary golf membership and access to KLCC’s other sports and recreation amenities, as well as facilities at the Residents’ Club.
“Kuala Lumpur Golf & Country Club continues to be the standard bear and a great advertisement for Malaysian golf. The design, construction and maintenance of both the West and East Courses are absolutely world-class.” —Jonathan Ponniah, managing editor of ParGolf Magazine.
THAILAND
Black Mountain Hua Hin
Black Mountain Hua Hin
Rank:
No. 3 in Thailand
The course:
Since its launch in 2007, the 18-hole par-72 championship course has twice hosted Asian PGA events, in addition to the 2014 King’s Cup. It is consistently voted the best course in Thailand and has picked up awards including ‘Best Course in Asia Pacific’ and made it onto Golf Digest’s 2013 list of ‘Best 100 Courses Outside the United States’. Designed bychallenging nine-hole par-3 course.
The residences:
Situated at the foothills of the surrounding valleys in front of the par-3 course, the residential component includes 15 course-side villas, 70 condominium units and 10 pool villas, with more currently under construction near the ninth hole. The pool villas range in size from three-bedroom 136 sqm units to 155 sqm sqm two-bedroom properties, whilst the condos vary from 142 sqm to the 182 sqm penthouses. Land plots are also available for purchase. Prices start from THB6.9 million (USD213,000) for the condo units, while the course- side villas can fetch up to THB39 million (USD1.2 million).
The benefits:
Each investment option, as well as the land plots that are available for purchase, come with a lifetime membership to the club. Other amenities at Black Mountain include a water and wakeboard park, tennis courts, spa and gym, and a fine dining restaurant. Although investors, under Thai law, cannot strategy allows buyers to become shareholders in the holding company Black Mountain Hua Hin Co.
“Black Mountain is one of my favourite courses. This gold course is simply incredible, presented immaculately all year round and is truly a great test of golf.” —Thongchai Jaidee, professional Thai golfer and world number 37
PHILIPPINES
Anvaya Cove by Ayala Land Premier
Anvaya Cove by Ayala Land Premier
Rank:
To be determined
The course:
The residences:
Anvaya Cove opened more than a decade ago and, upon completion, will feature nine neighbourhoods with a total of 830 units. To date, properties at two neighbourhoods are available: The Seascape Ridge, which is spread out across 4.6 hectares, includes 56 two-storey villas, whilst the 300 units at the recently-completed low-rise condo project Sea Breeze Verandas range from the one-bedroom 63 sqm apartments to three-bedroom 189 sqm penthouses. Prices for units at the Sea Breeze Verandas start from PHP7.59 million (USD173,000), and PHP14.95 million (USD340,780) for the The Seascape Ridge properties.
The benefits:
Investors can take advantage of the leasing programme, known as Golf Shares, that provides an estimated PHP7,000 (US160) rental return per night, although this is split 50-50 with the in-house management team. Besides the Golf and Sports Club, investors will get a membership to the Anvaya Cove Beach and Nature Club.
“Through its diversity the site gave us an opportunity to create a unique golf journey for golfers as well as non-golfers, and although this is a residential project, it does not feel that way as the homes are nestled in to the existing landscape and rarely noticeable.” —Kevin Ramsey, principal at Golfplan and course architect.
Latest worldwide course rankings by Golf Digest.
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