Dream Home in Malaysia - Forest City




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ORIGINAL POST

Posted by vichui 21 mths ago
Who have heard of this property in Malaysia?

It seems to be a dream home. Green building and blue surrounding.

https://www.bloomberg.com/news/features/2016-11-21/-100-billion-chinese-made-city-near-singapore-scares-the-hell-out-of-everybody

COMMENTS

Baap 21 mths ago
Are you advertising the site?

Singapore has about 8% vacancy rate, last time I checked. And prices are still dropping in Singapore. Who would buy this?? Who needs this??

This project looks very nice on paper, but I doubt it will be completed as planned, and if it's only half completed it will be a disaster. It might end up being the typical ghost city by Chinese developers. I can't imagine it ending up well.

vichui 21 mths ago
I thought of it being a ghost town as well; but the developer claimed that they have sold close to 20,000 units in just about one year.

Malaysia property being 1/8 of Singapore's property value and only a few kilometre from Singapore, no wonder why Singapore prices are dropping.

Any other negative comments beside the one that I have posted.

Thanks.

Baap 21 mths ago
I think it will be really crowded, once everything is completed. And crowded with mainlanders... :)

And who is supposed to live there? Singaporeans won't want to live there, because they don't like Malaysia.

"The scale of the projects is dizzying. Country Garden’s Forest City, on four artificial islands, will house 700,000 people on an area four times the size of New York’s Central Park. It will have office towers, parks, hotels, shopping malls and an international school, all draped with greenery. Construction began in February and about 8,000 apartments have been sold, the company said.

It’s the biggest of about 60 projects in the Iskandar Malaysia zone around Johor Bahru, known as JB, that could add more than half-a-million homes."

And you think there is demand for 1/2 million homes? Haha

vichui 21 mths ago
Singapore housed 1.6 million foreigners who may not necessary like to live in the expensive apartments in Singapore.

In addition, the tax free policy in Malaysia may attract foreign investments which lead to housing demand.

If the forest city can be completed as such, it seems to be a lot better than Shenzhen in China.

Cheers

Baap 21 mths ago
If many people will move out of Singapore the prices in Singapore will drop considerably, and get on a par with that "forest (of housing) city". It does look like a very crowded place. Have you calculated the people per square km if all the flats will be sold and occupied?

I think there simply isn't the demand for all these flats. This would succeed in Hong Kong, but there is no housing crisis in Singapore. There are plenty of vacancies: 8% on my last check. And that's a lot!! There is also a lot of construction on the Malaysian side of the border (as I copy-pasted two paragraphs last time).

Unless there is a great economic boom in the region, and Johor Bahru will become the next Shenzhen (which I very much doubt), and there is a lot of migration into the area from other places in Malaysia (or other countries), I really don't see how these houses can be occupied.

Yes, of course you can always sell houses to speculators, who hope to sell them for a profit in a couple of months/years, but if nobody wants to live in them, eventually the who thing is going to collapse.

Also, how much will it cost to keep that forest (of buildings) city in nice conditions? I am sure it's very expensive. If it's only 50% occupied, can they afford to keep it nice? If not, will it slowly degrade? Plus, shabby construction by Chinese developers...

Too risky in my opinion.

vichui 21 mths ago
$250/ft in forest city vs $2,000/ft in Singapore in a sense reflect the risk and potential.

1/3 of Singapore spending in Malaysia seems to be attractive in forest city to attact some attentions.

I wish I have a crystal ball so that I can make a right decision.

Thanks

Baap 21 mths ago
$2,000/ft where in Singapore??? What are you talking about? That would be the city centre, not somewhere 2 hours away from the city centre. In the suburbs housing is much much cheaper, and still much easier to reach than some island in Malaysia.

For example this one, S$750/ft: https://www.iproperty.com.sg/propertylisting/5036184/Belgravia_Villas-Cluster_Housing-ForSale

S$592/ft: https://www.iproperty.com.sg/propertylisting/13043726/One_Surin-Terrace-ForSale

"1/3 of Singapore spending in Malaysia seems to be attractive in forest city to attact some attentions. " I don't know what this sentence means.

vichui 21 mths ago
Thanks BAAP for the insight !

Baap 21 mths ago
Are you considering buying? If I bought in Singapore I would stay in the city centre.

Also, you need to consider that cars are incredibly expensive in Singapore. How long does it take to go to that island without a car? Buy close to an MTR station!

vichui 20 mths ago
Thanks BAaP

hellohellohello 20 mths ago
Some caution: "The $100 Billion City Next to Singapore Has a Big China Problem"
https://bloom.bg/2svHGo2

OffThePeak 20 mths ago
Singapore is still in the down-phase of the 18 year cycle.

I cannot see much enthusiasm in Forest City, until the cycle is Zooming Up again

(from the article):

"Samuel Tan, executive director at KGV International Property Consultants, said approvals for all new serviced apartments in Johor have been frozen since 2014 and existing projects were introducing more affordable properties at around 600,000 ringgit instead of 800,000 to 1 million ringgit.

“Given the oversupply, we don’t foresee any recovery until 2019 for high-rise projects,” Tan said. He said China’s capital controls were only significant to the Chinese-owned projects.

The glut of properties being built in Johor has also affected local developers, Petaling Jaya-based Tropicana Corp. is giving a 25 percent rebate on the list price of homes they are marketing an interest-free, 36-month deferred payment plan. Resale asking prices of properties in Johor have dropped 2 percent in the past two years, according to real estate listings website PropertyGuru.com.

Yu, the buyer from Guangzhou, worries that the thousands of apartments still to be built at Forest City will be hard to sell without Chinese buyers."

vichui 20 mths ago
A 48 square meter apartment costs a little over 500k ringgit in forest city.

Baap 20 mths ago
This looks like a disaster in the making.

"He said China’s capital controls were only significant to the Chinese-owned projects." Of course not. It's for capital exported from China. It doesn't matter who owns the projects. Chinese just want to buy, they don't want to live in them. It's just a bubble. And like all bubbles, it will eventually explode.

"Resale asking prices of properties in Johor have dropped 2 percent in the past two years" In the meantime, you have two years old properties, and a lot of new properties entering the market.

It will take years before the Singapore property market recovers.

vichui 19 mths ago
They claimed the forest city is nearly as big as Macau with 2 standard golf courses and 2 5-stars hotels. Is it true?


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