Forest City, a large-scale development project by the Chinese developer Country Garden, was created in partnership with the Johor government in Malaysia.
Situated along the Johor Strait, the project shares a border with Singapore’s waters. Originally, the plan included four islands and a section called Mainland, designed to accommodate 700,000 people. It was intended to be a self-contained community, offering all the necessary amenities for such a large population, and was marketed as having easy access to Singapore.
Where are we today? Of the four islands, only one has been built, with approximately 28,000 units. There are schools, a shopping mall, infrastructure, apartments, houses, and a golf resort. However, occupancy rates within apartments and houses remain within a single-digit percentage.
So why should you look again at what Forest City has to offer? Let’s go back to the beginning.
DESIGN AND LOCATION
The basic attractions of the development still apply today as they did when it was conceived: a self-contained community with quick and easy access to Singapore. The development was planned with a focus on open, green spaces, where the residents had easy access to parks and beaches. It offered not only a great place to live but also a fantastic holiday destination.
As the properties were aimed at upper-middle-class buyers, the quality of the design and materials used reflects that. There is a mixture of 1-to-3-bedroom condo apartments and landed property on Pulau Satu and landed property on the mainland section next to the Golf and Country Club. The amenities in the development are designed to align with the expected residents, featuring an international school on Pulau Satu, a shopping mall, and a golf resort with two 18-hole courses on the mainland. The surrounding area also has a range of quality schools and universities close by, including Marlborough College and UK universities, Reading and Southampton, a short drive away.
A STRATEGIC ALTERNATIVE
Forest City was aiming to attract people who wanted to have easy access to Singapore but with better value for money. Over the last 10 years, Singapore’s economy has been heating up, and there are great pressures on housing, schools, and other public services, and visas are getting harder to get; the threshold for salaries is increasing, and there are restrictions on places in public schools for foreigners. Forest City was designed to be the workaround.
IF IT IS SUCH A GREAT PLACE, WHY DO VERY FEW PEOPLE LIVE THERE?
Country Garden had a controversial marketing strategy that was aimed predominantly at upper-middle-class Chinese. That market collapsed overnight when the Chinese government brought in strict currency restrictions, particularly on buying foreign property. Up until that point, sales were going well, but losing their major market brought sales to a standstill.
SPECIAL ECONOMIC ZONE
A new initiative that has been developed in the last couple of years is the Johor-Singapore Special Economic Zone, forming a large Free Trade Zone with Singapore. The focus sectors for the SEZ will include logistics, financial and business services, tourism, food security, education, healthcare, the digital economy, energy, and manufacturing. Within the SEZ, Forest City will have additional benefits, including a tax incentive package, to encourage businesses to relocate there.
FOREST CITY AND MM2H
It’s not just in business that Forest City has a special category. There is a special MM2H visa (the Special Finance Zone (SFZ) MM2H) created for the development. There are some different conditions compared to the other categories in MM2H; namely, the fixed deposit is much lower at US$65,000 (US$32,000 for those aged over 50), and you must buy a property in the development. It must be bought from the developer and not on the resale market.
This visa will appeal to retirees or others who want to be closer to Singapore but have the lower cost of living in Malaysia. It will be an attractive option for Singapore residents, whether retired or still working but not needing to commute daily. The potential savings are substantial. For those who can travel to Singapore outside of peak hours, the journey is relatively convenient.
LOOKING AHEAD
Forest City has faced its share of challenges, including a controversial marketing strategy that made it an easy political target. However, the basic fundamentals of the project, being a great place to live and good design, are all still there. With the support from the Federal Government and the creation of the SEZ, there are extra incentives to relocate there for businesses and to take your family.
Sometimes mega-projects like this take time to find themselves. Just remember, for example, that the Millennium Dome in London was derided at the time but has eventually morphed into the successful O2 Arena.
Forest City may not be finished, or what it was originally envisioned to be, but it definitely has the potential to have a significant impact in the region.
HOW TO APPLY FOR THE MM2H PROGRAMME
To learn more about the MM2H programme, including the new Silver Tier and Special Finance Zone options, visit the MM2H help desk at www.mm2h.com, or contact Andy Davison directly at andyd@tegmedia.my. Please mention the code IND-EXPAT.