"I Should Enjoy It After Retirement": Prices Quadruple... Memberships Over 100 Million Won Popular, but Closures Mount

Japan Golf Membership Prices Hit 17-Year High... Individual Demand Drives Increase
Closures Mount at Regional Golf Courses... Industry Polarization Deepens

Prices for golf club memberships in Japan have risen about 80% from before the COVID-19 pandemic, reaching their highest level in 17 years. Demand from individuals who want to play golf is driving the increase. However, about one-quarter of all golf courses are running deficits, and more are closing because of financial difficulties. In contrast to rising membership prices, polarization across the golf industry appears to be worsening.

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Japan Golf Membership Prices Up 80%...Led by Individual Demand and Mid-Range Clubs

According to the Nikkei on the 18th, the average membership price at 150 major golf courses, compiled by the Kanto Golf Membership Trading Cooperative, was around 3.05 million yen (about 25.77 million won), the highest level since 2009. Comparisons are limited because the way consumption tax is displayed has changed, but prices were up about 80% from the end of 2019.

Membership at Oasama Golf Club in Miyota, Nagano Prefecture, costs around 14 million yen (about 118.3 million won), including fees and other charges. That is four times the approximately 3.5 million yen price in 2019. The club is about a two-hour drive from central Tokyo and sits on a plateau at an elevation of about 1,000 meters, making it a popular destination for playing golf in relatively cool conditions even in summer. In winter, members can use affiliated golf courses in other areas, including Chiba Prefecture.

Memberships in the mid-range price bracket of 3 million to 5 million yen (about 25.35 million to 42.25 million won) have seen particularly notable gains. A survey by membership broker Sakura Golf of 536 golf courses in the Kanto region found that prices in this bracket were up 76% from the end of 2019. That is twice the 38% increase for high-end memberships priced at 10 million yen or more.

While wealthy individuals and corporations are the main buyers of high-end memberships, the primary buyers of mid-range memberships are individuals who want to play golf themselves. “Golf enthusiasts are buying memberships simply for the purpose of playing golf,” said Masaru Sagawa, president of Sakura Golf.

There are also more cases of people purchasing memberships with proceeds from stock investments or retirement pay. “We’re seeing people consider joining after retirement so they can socialize or look after their health,” said Toru Nakagawa, general manager of Hanno Golf Club in Saitama Prefecture.

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Tokyo Prices Up 2.7-Fold, While Regional Courses Keep Closing...A Widening Divide in Japan's Golf Industry

However, rising membership prices do not mean that the golf industry as a whole is thriving. A comparison of the median changes in membership prices by region, based on Sakura Golf data, showed that prices in Tokyo rose 2.7-fold from the end of 2019, while those in Yamanashi rose 2.3-fold and those in Okinawa rose 2.2-fold. By contrast, prices fell about 40% in Yamagata and Aomori, where heavy snowfall limits the period in which people can play golf.

More golf courses are also deciding to close because of financial difficulties. Yaita Country Club in Tochigi Prefecture has informed its members of plans to close at the end of 2027. It cited fierce competition among regional golf courses, which makes it difficult to raise fees. The site is scheduled to be sold to a solar power company.

According to the Japan Golf Course Management Association, Japan had 2,153 golf courses as of July, a decline of more than 10% from the peak in fiscal 2002. About one-quarter of all golf courses are said to be running deficits.

Even when membership prices rise, golf course revenues do not necessarily increase. Existing memberships are traded between sellers and buyers, so the golf course does not receive the transaction proceeds. Golf courses earn most of their revenue from usage fees and annual membership fees. Rising facility maintenance and labor costs are also adding to the financial burden.

The aging membership base is another challenge. An official at a prestigious golf course in the Kanto region said the average age of its members is around 70. Observers say that sustaining golf's popularity will require attracting more young people and expanding demand for regional golf courses.

This content was produced with the assistance of AI translation services.