Tan Kin Lian enjoys the view from the balcony of his newly built apartment on the 24th floor. The view is sensational: greenery, modern high-rise buildings, an open view of the Johor Strait in the South China Sea. But all this also reminds of a scene from a movie about the end of the world: there are no cars on the streets, no people are visible on any of the countless balconies. “Forest City“ in the state of Johor in Malaysia is almost uninhabitable and looks like a ghost town.
A report by German public media ARD said pensioner Tan from Singapore was the sole resident of the floor. The other eight apartments, as well as almost the entire building, are empty.
Initial influx of investors
In 2016, China's largest real estate developer, Country Garden, unveiled its ambitious mega project “Forest City” directly on the beach in Johor, Malaysia. The vision: a green metropolis with a golf course, water park, offices, bars and restaurants, which was to become home to nearly one million people. On the other side of the bay, right next to Singapore, a second similar megalopolis was to be built, says ARD. The newly elected Sultan of Malaysia, Ibrahim Ismail from Johor, also participated in the project with his company.
Initially, the euphoria surrounding the project was huge. “Every day, 17 buses full of potential buyers from China would arrive, recalls property dealer Samuel Tan. But then everything changes: China passes a new law restricting money flows abroad. Which directly affects “Forest City“ and things around the ambitious project are gradually going downhill. “People now only come for the holidays, but they don't live here permanently. We call this a ghost town,” explains Tan.
Former investment banker Eric Sim has invested in two apartments in Johor. He is from Singapore and has even considered moving to the new city permanently. But today he regrets the purchase: “It was the worst investment of my life. I have previously invested in property and shares and been successful. But it fell far short of my expectations. "I never thought I would lose so much money," he told ARD.
I have financed the two apartments with a bank loan. All in all, it cost him about three million Malaysian ringgit (about €640,000). He was convinced by the proximity to Singapore and the international school that had already been built in “Forest City”. But the city never became a comfortable place to live, transport connections remained underdeveloped, and investors could not service the loans taken. Sim decides to sell the apartments, but fails to find a buyer for 6 years. Finally he sells them, but with a loss of around 100,000 euros.
Environmental damage is nobody's concern
For environmental activist Serina Abdul Rahman “Forest City“ is a real nightmare: “Gotham City - that's the first thing that comes to mind. It's so surreal. It doesn't belong here“, she is convinced.
The environmental damage is particularly severe: vast areas of sea grass have been destroyed for the artificial island on which the city is built. These areas are critical to fish populations as they provide spawning grounds for many species. “Without sea grass, there will be no fish and seafood,”, emphasizes Abdul Rahman.
Instead of the planned 700,000 people, today in “Forest City” five to ten thousand people live. However, the city is trying to attract tourists. The water park is working, and stray vacationers are sometimes spotted in the hotel complex, writes ARD further.
But many of them come only because alcohol is tax-free here – it is not by chance that the local press often publishes articles about drunken brawls. The city has also become a meeting place for Singaporeans who have secret relationships. However, this is hardly a profitable model for a future city.
Last Chance: Reality Show Set
Now the city serves only as a set for TV shows - Netflix has already filmed the reality show “The Mole“ in the deserted city. Empty blocks of flats have become film sets. This is also the last ray of hope for a project that initially cost billions, but today is more of a monument to failed urban planning and ecological carelessness, commented ARD.