Forest City

Forest City, a massive $100 billion development in Johor, Malaysia, was envisioned as a futuristic eco-friendly metropolis catering to international investors, particularly from China. Developed by Country Garden, it features luxury residences, smart city technology, and green infrastructure, built on artificial islands near the Singapore border. The project aimed to attract businesses, high-end tourism, and expatriates, leveraging its proximity to Singapore’s economic hub. However, it has faced challenges, including slower sales due to China’s capital controls, political concerns in Malaysia, and an oversupply of high-end housing. Despite efforts to reposition itself as a hub for tech, education, and industry, much of Forest City remains underoccupied, raising questions about the feasibility of large-scale speculative urban developments in the region.

Forest City is a new city, not just a district. Located in Johor, Malaysia, near the Singapore border, it is being developed by Country Garden as a futuristic, smart city on reclaimed land. The project, which began in 2015, is designed to accommodate up to 700,000 residents and features luxury residential areas, commercial zones, green spaces, and state-of-the-art infrastructure.

Unlike a district, which would be an extension of an existing city, Forest City is a self-contained urban area with its own infrastructure, services, and governance, planned to serve as a global trade and tourism hub. The city is marketed as sustainable and eco-friendly, but its development has faced challenges, including financial and political hurdles.

Forest City remains far from its original vision, with vast empty units and limited economic activity. While it’s not completely abandoned, its challenges make it closer to a cautionary tale than a success story at this stage.

Strengths:

• Bold Eco-Friendly Vision: Planned as a “green city” with vertical gardens, renewable energy integration, and car-free zones, Forest City was marketed as a model for sustainable urban living.
• Proximity to Singapore: Located near one of Southeast Asia’s leading economic hubs, Forest City aimed to attract international investors, Singaporean businesses, and affluent expats.
• Early Momentum in Construction: Initial phases saw rapid building of luxury condos, hotels, and amenities, creating the appearance of a fast-developing city.

Challenges:

• Overbuilt with Limited Demand: Forest City was designed for 700,000 residents, but actual population figures remain far below expectations, with many units sitting empty.
• Dependent on Foreign Buyers: Much of the project relied on attracting Chinese investors, but shifts in China’s capital control policies and global economic headwinds drastically reduced demand.
• Limited Local Appeal: Despite heavy marketing, Forest City has struggled to draw local buyers, and its high prices have made it unaffordable for many Malaysians.
• Economic and Political Headwinds: Changing government policies, questions about land use, and local pushback have further hampered progress, leaving the city in a partially realized state.
• Environmental and Social Concerns: Reclamation and construction have impacted local marine ecosystems and drawn criticism from environmental groups, adding to its controversies.