Additional Coverage:
- I spent a night in one of the empty apartments in Malaysia’s $100 billion ghost town, and I can see why very few people want to live there (newsbreak.com)
In the heart of Malaysia stands Forest City, a luxury estate with a story that reads like an ambitious dream yet to fully awaken to reality. Developed by Country Garden, China’s largest real estate developer, with an eye-watering budget of $100 billion, this futuristic city was envisioned to be a bustling metropolis.
However, the current landscape paints a different picture, one that resembles more of a ghost town than the vibrant community it was meant to be. Delving into the life of Forest City reveals a complex tapestry of reasons why this grand project hasn’t lived up to its hype, ranging from its target market to the lifestyle it promotes.
Forest City, despite its grandeur and lavish promotion, currently houses only 9,000 residents, a figure starkly below the anticipated 700,000. This discrepancy between expectation and reality highlights a significant challenge in achieving the critical mass needed to bring the city to life. The streets are quiet, and the buzz of daily activities is conspicuously absent, leaving many to wonder what went wrong in this city of dreams.
Peering through the windows of Forest City’s luxury apartments, one finds an abundance of vacant spaces. Even the digital realm corroborates this emptiness, with numerous listings on Airbnb waiting for temporary occupants. This situation points to a deeper issue of occupancy, where these luxurious dwellings are struggling to find permanent residents, further emphasizing the ghost town ambiance.
The target market for these pristine properties was not the local population. A striking 98% of the units were sold to foreign buyers, indicating a clear preference in Country Garden’s sales strategy. This approach has contributed to the estate feeling more like an international enclave rather than a mixed community integrated with the local Malaysian fabric.
Despite the high-end marketing pitches, a visit to the apartments reveals a sparser reality. The units, though grand in potential, often come sparsely furnished, detracting from the advertised luxury living experience. This mismatch between marketing and reality has left many buyers feeling underwhelmed by their investments.
Speaking of investments, it becomes clear that many of these properties were purchased not as homes, but as investment opportunities. This speculative buying has resulted in high vacancy rates, as owners wait for the property value to appreciate rather than occupying or renting out their units for steady income.
The pricing strategy for Forest City also plays a role in its desolation. Units are priced significantly higher than the locally preferred landed properties, setting a financial barrier for domestic buyers. This discrepancy has deterred Malaysians from investing in Forest City, further alienating the project from potential local residents.
Among the few that call Forest City home, the grand amenities it boasts are notably underutilized. A visit to the estate’s facilities often reveals only a handful of residents making use of them, underscoring the lack of community engagement and the sheer emptiness that pervades the area.
Lastly, the cultural imprint of the primary buyers is evident in the surrounding area of Forest City’s condo complex. Chinese restaurants and stores dot the landscape, creating an enclave that mirrors the preferences of mainland Chinese residents. This localization has further distanced the project from integrating into the broader Malaysian community, sealing its fate as an isolated bubble rather than a flourishing urban space.
In conclusion, Forest City stands as a testament to the complexities of creating a new city from scratch. Its struggles highlight the importance of understanding target markets, realistic pricing, and the creation of communities, not just buildings. As it stands, Forest City’s future remains uncertain, a $100 billion question mark on whether it can transform from a ghost town to the thriving metropolis it was envisioned to be.