A 100-billion-dollar development in Johor, Malaysia, is trying to shake off its reputation as a white elephant.
Ghost town
Forest City was intended to be a “living paradise” and was designed to attract Chinese nationals seeking a tropical vibe. A 2,833-hectare (7,000 acres) development was planned across four re-claimed islands with enough room for 700,000 residents, in skyscraping high-end apartments and villas overlooking palm-fringed beaches, lush foliage, and neighbouring Singapore.
But today, the project –which was part of the Chinese Belt and Road initiative to drive infrastructure investment – has all but ground to a halt amid financial woes for 60% stakeholder Country Garden. Faltering sales, unpredictable taxation and visa policies on second homeowners abroad, and huge company liabilities of more than $190 billion have combined into a perfect storm that has left Forest City devastated.
With only 10% or 700 hectares complete, it is home to fewer than 9,000 people, Country Garden has told Bloomberg. Its abandoned and desolate feel has caused it to be dubbed a ghost town by many. Some tourists have described it to media as “quite dead” and “a bit creepy.”
Fighting back
But Forest City is fighting back. Its webpages sing of “green”, “smart”, “dynamic” and “harmonious” living and invite people to experience “the ideal, idyllic, and technology-driven ecosystem of tomorrow.” Last spring it issued a press release boasting of its short haul credentials and “coastal resort life” offer. From August to September 2022, it welcomed at least 15,000 people to its local waterpark, it said.
Its $600-million golf resort is another draw being trumpeted front page of Forest City’s website and in press event tournaments organised for media relations. Syarul Izam, the vice president of Forest City has emphasised that the resort is popular with both local golfers and visitors buying packages to play and stay in one of 298 rooms. They contribute to the “weekend tourists” that Forest City is able to attract, according to Adilah Zain, a tourism professor at Malaysia’s MARA Technological University.
Similarly, Forest City has told Reuters that the two hotels on site are “always fully booked”.
Thousands of unsold units
Syarul Izam has said the development is still on track but stakeholders have not confirmed how much more will be built. Meanwhile 55,000 people visit the City’s real estate showroom each month. Whether there is enough buyer confidence to translate visits into purchasing one of the 5,000 unsold units remains to be seen.
