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Forest City represents one of Malaysia's most ambitious yet controversial real estate developments, spanning four reclaimed islands in Johor state near Singapore. Despite massive investment and government backing, this mega-project has earned the unfortunate reputation of being a "ghost town" with occupancy rates far below expectations.
The development showcases impressive infrastructure and luxury amenities, but struggles with a population of only 20,000 residents as of early 2025—less than 3% of its intended 700,000 capacity. Environmental concerns, regulatory challenges, and economic uncertainties have significantly impacted its growth trajectory, making it a cautionary tale for large-scale international property developments.
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Forest City is a massive real estate development in Johor, Malaysia, that has become largely vacant despite significant investment and infrastructure development.
The project currently houses only 20,000 residents out of a planned 700,000, earning it the "ghost town" designation due to various economic and regulatory challenges.
| Aspect | Current Status (2025) | Original Target |
|---|---|---|
| Population | 20,000 residents | 700,000 residents |
| Development Progress | 15% completed | Four full islands |
| Launch Date | 2016 (announced 2006) | 20-year project timeline |
| Developer | Country Garden (60%) + Johor State (40%) | Joint venture partnership |
| Primary Market | Limited international buyers | Chinese and international buyers |
| Current Designation | Special Financial Zone (2024) | Smart city with mixed use |
What is Forest City in Malaysia?
Forest City is a massive mixed-use development built on four artificial islands in Johor state, Malaysia, located just across the causeway from Singapore.
The project spans approximately 1,386 hectares and was designed as an integrated smart city featuring residential towers, commercial spaces, educational facilities, and recreational amenities. Country Garden Holdings, a major Chinese property developer, partnered with the Johor state government to create this ambitious development.
Forest City was positioned as a premium international destination targeting wealthy buyers, particularly from China, Singapore, and other Asian countries. The development incorporates green building technologies, smart city infrastructure, and luxury amenities including golf courses, international schools, and high-end shopping centers.
The project represents one of the largest foreign real estate investments in Malaysia, with total investment exceeding RM100 billion. It's something we develop in our Malaysia property pack.
When was Forest City developed?
Forest City development began with its initial announcement in 2006, followed by groundbreaking construction in 2014.
The project was officially launched in March 2016, marking the beginning of active sales and marketing to international buyers. Construction of the first phase, including residential towers and basic infrastructure, commenced shortly after the official launch.
The development timeline was originally planned as a 20-year project, with completion targeted for around 2026. However, as of September 2025, only approximately 15% of the total planned development has been completed.
Major milestones include the opening of Forest City International School in 2018, completion of the first residential phases by 2019, and designation as Malaysia's first Special Financial Zone in 2024.
Who developed Forest City and what are their goals?
Forest City is a joint venture between Country Garden Holdings (through Country Garden Pacificview Sdn Bhd) holding 60% ownership and Esplanade Danga 88 Sdn Bhd representing the Johor state government with 40% ownership.
Country Garden Holdings is one of China's largest property developers, known for large-scale residential and commercial projects across Asia. The company aimed to create their flagship international development and establish a strong presence in the Southeast Asian market.
The Johor state government's goals included attracting foreign investment, creating employment opportunities, and positioning Johor as a premier investment destination. They envisioned Forest City as an economic catalyst that would boost the state's GDP and international profile.
Both partners intended to leverage Forest City's proximity to Singapore to attract businesses and residents seeking lower costs while maintaining access to Singapore's economic opportunities. The developers also aimed to showcase sustainable urban development and smart city technologies as a model for future projects in the region.
What was the initial vision for Forest City?
The original vision for Forest City was to create a world-class smart city housing up to 700,000 residents across four artificial islands with integrated green infrastructure and advanced technology.
| Vision Component | Original Plan | Target Completion |
|---|---|---|
| Population Capacity | 700,000 residents | 2026 (20-year timeline) |
| Smart City Features | IoT integration, smart traffic systems, digital governance | Phased implementation |
| Green Infrastructure | Vertical gardens, renewable energy, waste management | Throughout development |
| Economic Zones | Financial services, technology hub, education center | 2020-2025 |
| Connectivity | Direct links to Singapore, KLIA, regional airports | 2020-2022 |
| Amenities | International schools, hospitals, golf courses, malls | Phased development |
What is the current population of Forest City?
As of early 2025, Forest City has approximately 20,000 residents, representing less than 3% of its planned capacity of 700,000 people.
This population figure represents a significant increase from the 8,000-9,000 residents reported in 2023, indicating some growth but still far below expectations. The majority of current residents are expatriate families, some Malaysian professionals, and a smaller number of Chinese nationals who purchased properties during the initial sales phases.
The resident population includes families with children attending Forest City International School, retirees who bought properties for lifestyle reasons, and some working professionals who commute to Singapore or Johor Bahru. However, many purchased units remain vacant, with owners treating them as investment properties rather than primary residences.
Population density remains extremely low across the development, with vast areas of completed residential towers showing minimal occupancy signs such as lit windows during evening hours.
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Are there many residents living in Forest City right now?
No, Forest City currently has very few residents relative to its size and capacity, earning it the widely-used designation as a "ghost town."
The development features dozens of completed high-rise residential towers, but occupancy rates remain extremely low with most units appearing vacant. During evening hours, only a small fraction of windows show lights, indicating minimal actual habitation despite substantial completed infrastructure.
Most residents are concentrated in specific buildings or areas, creating pockets of activity while leaving large sections of the development virtually empty. The low population density is immediately apparent to visitors, with wide boulevards, shopping areas, and recreational facilities appearing largely deserted during normal business hours.
Many property owners are absentee investors who purchased units as investments but do not reside in Forest City, further contributing to the low actual resident population versus sold units.
What kind of infrastructure is in place in Forest City?
Forest City features extensive modern infrastructure including luxury residential towers, commercial centers, educational facilities, and recreational amenities, though much remains underutilized due to low occupancy.
The completed infrastructure includes:
- Multiple high-rise residential towers with modern amenities and smart home features
- Forest City International School offering international curricula
- Several shopping and commercial centers with retail outlets and dining options
- Golf course and country club facilities for recreation
- Modern road networks, utilities, and telecommunications infrastructure
- Healthcare facilities and medical centers
- Waterfront promenades and landscaped public spaces
The infrastructure quality is generally high, featuring modern design and construction standards comparable to other premium developments in the region. However, the low population means most facilities operate well below capacity, with some services and amenities operating on reduced schedules due to limited demand.
Is Forest City fully operational or still under construction?
Forest City is partially operational with about 15% of the total planned development completed as of September 2025, while the remaining phases remain under construction or on hold.
Only one of the four planned artificial islands has been fully reclaimed and developed, with basic infrastructure and residential towers completed. The other three islands are in various stages of development, with some construction activities ongoing but at a reduced pace compared to original timelines.
Operational facilities include residential buildings, the international school, some commercial areas, recreational facilities, and basic utilities. However, many planned components such as additional commercial zones, advanced smart city features, and expanded transportation links remain incomplete.
Construction progress has slowed significantly due to reduced investor interest, financial constraints facing the developer, and lower than expected sales volumes. It's something we develop in our Malaysia property pack.
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What is the local economy like in Forest City?
The local economy in Forest City remains underdeveloped with limited business activity and employment opportunities, primarily dependent on a few key sectors and government initiatives.
The designation as Malaysia's first Special Financial Zone in 2024 represents the most significant economic development, offering tax incentives and duty-free status to attract financial institutions and technology companies. However, as of September 2025, major corporate relocations or new business establishments have been limited.
Economic activity centers around educational services (Forest City International School), hospitality and tourism (hotels and golf course), retail services for residents, and property management services. The development lacks the diverse economic base originally envisioned, with insufficient businesses to support a large residential population.
Employment opportunities within Forest City are primarily in service sectors, with most working residents commuting to Singapore or Johor Bahru for employment. The economic ecosystem remains dependent on external economic activity rather than generating substantial internal economic growth.
What kind of businesses are operating in Forest City?
Business operations in Forest City are currently limited to essential services and amenities, with many commercial spaces remaining vacant.
Currently operating businesses include:
- Forest City International School providing K-12 education
- Luxury hotels and resort facilities serving visitors and residents
- Golf course and country club operations
- Retail outlets and restaurants in shopping centers
- Property management and real estate services
- Healthcare clinics and medical facilities
- Financial services and banking branches
- Transportation and logistics services
The majority of planned commercial and office spaces remain empty, awaiting tenants and businesses that have not materialized as expected. Many retail units in shopping centers operate with limited hours or remain closed due to insufficient foot traffic from the low resident population.
Have there been reports of people leaving or avoiding Forest City?
Yes, there have been documented reports of residents leaving Forest City and potential buyers avoiding the development due to various challenges and limitations.
Many residents have left due to the lack of amenities, limited employment opportunities, and the isolation created by low population density. The absence of a vibrant community atmosphere and limited social activities have contributed to resident dissatisfaction and departure.
International buyers, particularly Chinese nationals, have been deterred by China's capital control restrictions limiting overseas property investments to $50,000 per year. Political tensions between Malaysia and China, along with regulatory uncertainties, have further discouraged investment from the primary target market.
The COVID-19 pandemic significantly impacted international travel and investment, leading to cancelled purchases and delayed relocations. Some property owners who had planned to relocate to Forest City have postponed or abandoned their plans due to travel restrictions and economic uncertainty. It's something we develop in our Malaysia property pack.
What factors are contributing to Forest City's population or lack of it?
Multiple interconnected factors are contributing to Forest City's low population and "ghost town" status, ranging from economic to regulatory and environmental issues.
| Factor Category | Specific Issues | Impact Level |
|---|---|---|
| Economic Constraints | China's capital controls, Country Garden financial troubles | High |
| Regulatory Challenges | Foreign investment restrictions, visa limitations | High |
| Market Targeting | Over-reliance on Chinese buyers, limited local demand | High |
| Environmental Concerns | Land reclamation damage, sustainability questions | Medium |
| Infrastructure Gaps | Incomplete development, limited connectivity | Medium |
| Economic Ecosystem | Limited job creation, insufficient business activity | High |
| External Events | COVID-19 pandemic, political uncertainties | Medium |
Conclusion
Forest City represents a cautionary tale of ambitious real estate development that has failed to achieve its intended goals despite significant investment and government support. With only 20,000 residents out of a planned 700,000 and just 15% completion after nearly a decade, the development clearly qualifies as a "ghost town" in its current state.
The project's challenges stem from overreliance on foreign buyers, regulatory constraints, economic uncertainties, and insufficient local demand for such a massive development. While the designation as a Special Financial Zone offers new opportunities, substantial changes in economic conditions and business attraction would be required to revitalize the project.
For potential property investors, Forest City presents both risks and opportunities. The low occupancy rates, limited amenities, and uncertain future development timeline make it a risky investment for those seeking immediate returns or livability. However, the quality infrastructure, government backing, and potential for future growth through the Special Financial Zone designation could appeal to long-term investors willing to accept significant uncertainty.
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Forest City's situation reflects broader challenges in mega-developments that target international buyers without sufficient local market support.
The project's future will largely depend on the success of government initiatives to attract businesses and residents through the Special Financial Zone incentives.