Forest City: Inside Malaysia’s Chinese-built ‘Ghost City’ Haunted by Failed Ambitions

In 2016, China’s largest property developer, Country Garden, unveiled Forest City, a $100 billion mega-project under the Belt and Road Initiative, promising a dream paradise for all mankind. Eight years later, Forest City in Johor, Malaysia, stands as a stark reminder of the far-reaching impact of China’s property crisis.

Nazmi Hanafiah, a 30-year-old IT engineer, moved to Forest City a year ago, lured by the promises of an eco-friendly metropolis featuring a golf course, waterpark, offices, bars, and restaurants. However, after six months, he found himself trapped in what he describes as “a ghost town” and decided to leave, even forfeiting his deposit.

Despite Country Garden’s optimism and claims that Forest City would eventually be home to nearly one million people, the reality is grim. Only 15% of the entire project has been built, and just over 1% of the total development is currently occupied, according to recent estimates.

The isolated location of Forest City, built on reclaimed islands far from the nearest major city, Johor Bahru, has earned it the local moniker “Ghost City.” Nazmi Hanafiah recounts his eerie experience, stating, “It’s lonely around here – it’s just you and your thoughts.”

Forest City, initially aimed at the domestic Chinese market, proved to be financially out of reach for most Malaysians. The deserted beach closed shops and restaurants in the purpose-built mall, and dark, unoccupied apartment blocks contribute to the surreal and abandoned atmosphere.

Joanne Kaur, a resident living on the 28th storey of one of the tower blocks, shares her sentiments, stating, “I feel sorry for people who actually invested and bought a place here. If you were to Google ‘Forest City,’ it’s not what you see here today.”

In addition to the property market turmoil in China, local political factors, such as visa restrictions for Chinese buyers imposed by Malaysia’s former prime minister Mahathir Mohamad in 2018, have contributed to Forest City’s current state. The Malaysian government’s current support for the project is uncertain, adding to the challenges.

Country Garden, facing debts of nearly $200 billion, insists that the Forest City project is “safe and stable.” However, the broader challenges in China’s property market, marked by debt-laden developers and government intervention, cast doubt on the feasibility of completing ambitious projects like Forest City.

Forest City stands as a cautionary tale of ambition meeting reality in China’s property crisis. Whether the fate of Forest City and similar projects across China will be determined by government support remains uncertain. For former residents like Nazmi Hanafiah, leaving Forest City was a necessary step to regain control of their lives.

BBC NEWS