STUDY OF THE MARKET FOR PRIVATE RECREATIONAL FACILITIES

Abstract

With increasing affluence, Singaporeans are now striving to attain a more sophisticated life-style, which includes country club membership. It seems that the non-golfing private recreational club market is an emerging market in Singapore because such clubs can enable the fulfillment of Singaporeans aspirations more realistically. The emergence of such a market can be noticed by the fact that there are still new clubs entering the market despite falling prices. There is also a wide gap between the bids for State land by the developers of such clubs. These phenomena cause one to wonder if there is sufficient demand to support the supply of such memberships. However, the demand and the supply are functions of several factors. Therefore, in order to explain the performance of the market, the study aims to look at the market in its totality, inclusive of the implications of the determinants. This study uses a review of relevant theoretical and empirical investigation by primary sources such as surveys and personal interviews. Scattered secondary information about the market is consolidated. It is found that the market was in a recession for 1995 and it seems that the market has not recovered in the short run. Given the volatile nature of the market, developers have to take calculated risks in such developments. The implications of the determinants of demand and supply must thus be taken seriously.