Buzz and Community absent in Malaysian Forest City Ghost City
Abandoned. Pervasive desolation.
https://chatgpt.com/c/682d9262-3108-8009-8eee-f2e6f36f091c
Forest City, located in Johor, Malaysia, is a $100 billion real estate development launched in 2016 by Chinese property giant Country Garden. Envisioned as a futuristic, eco-friendly metropolis comprising four artificial islands, it was designed to house up to 700,000 residents and feature amenities like golf courses, water parks, offices, and shopping centers .(Ceylon Independent, Obozrevatel)
Why It Became a Ghost City
Despite its ambitious vision, Forest City has become emblematic of overambitious urban planning and geopolitical miscalculations. As of 2025, only about 9,000 people reside there, a fraction of its intended population .(Reddit)
Key reasons for its under-occupancy include:
- Target Market Misalignment: The project primarily targeted Chinese middle-class investors seeking overseas property. However, China’s capital controls, including a \$50,000 annual limit on foreign spending, and Malaysia’s restrictive visa policies for foreign property owners, significantly curtailed potential buyers .(chineseconsumers.news, Wikipedia)
- Economic and Political Factors: The COVID-19 pandemic, coupled with China’s real estate downturn and Country Garden’s financial struggles, further dampened investor confidence. Additionally, political shifts in Malaysia led to policy changes that affected foreign ownership .(Wikipedia)
- Affordability Issues: With condominium prices averaging around \$1.14 million, the properties were beyond the reach of most Malaysians, limiting local occupancy .(news)
Environmental and Structural Concerns
The project’s construction involved extensive land reclamation, leading to significant environmental degradation, including the destruction of mangrove forests and seagrass meadows. Moreover, rapid development without adequate soil stabilization has resulted in structural issues like cracks in buildings and roads .(Wikipedia)
Current Status and Future Prospects
In an effort to revitalize the area, the Malaysian government designated Forest City as a Special Financial Zone in 2024, offering tax incentives to attract businesses and investors . Despite these measures, the city remains largely uninhabited, with many facilities unused and a pervasive sense of desolation .(Wikipedia, The Sun)
For a visual exploration of Forest City’s current state, you might find the following video informative:
Forest City: China’s \$100B Mega Ghost City
