Forest City Review: 10 Pros and cons of this huge residential development in Johor Bahru

It’s no secret that private property in Singapore costs a bomb. But just across the Causeway in Johor Bahru, your SGD can go a lot further. The lower prices are a key reason some Singaporeans have decided to buy property in JB. Sounds like a good idea, right? Not necessarily.

Those who snapped up units in huge JB development Forest City have been getting the heebie jeebies amidst reports that the massive 2,800 hectare project, helmed by troubled Chinese developer Country Garden, is at risk of turning into a Malaysian ghost town.

Launched in 2016, Forest City, which is located on four artificial islands located between Singapore and Peninsular Malaysia, has been advertised as a luxurious tropical enclave, a sort of high-rise Sentosa Cove.

Originally targeted at Chinese nationals, Forest City is now struggling with low occupancy rates, sparking fears that it will turn into a ghost town. A recent report indicated that only 1% of the resident target has been met so far.

Former presidential candidate Tan Kin Lian owns an apartment in Forest City and is known for Facebook livestreams filmed in his unit, although it appears he uses it as a holiday home and resides in Singapore.

So, is Forest City a good idea? For some, there are some draws in spite of the ghost town issue. Golfers, for example, can play at the Forest City Golf Resort at a lower price than they would pay in Singapore. The Forest City Water Park might appeal to families who are sick of jostling with others at their local pool.

Forest City is also situated in the Iskandar region, which the Malaysian government has turned into a Special Economic Zone where you can shop for duty-free goods.

Current freehold high-rise apartment projects in Forest City include Regalia Park and Ataraxis Park, and it is probable that more will be developed in the future. As Forest City will be under development for about 30 years, there is a lot of time to wait and see what happens.

Forest City Condo Review (Summary Table)

*Information from 99.co, Propertyguru, and other property listing websites is accurate as of time of writing.

Forest City Price

According to PropertyGuru, the current going rate for Forest City apartments is 1,508,080 MYR (433,437.57 SGD) to 17,000,000 MYR (4,885,963.40), which works out to 742 MYR psf (213,26 SGD) to 1,686 MYR psf (484.57 SGD). Prices have currently fallen below launch prices, which started at 1,200 MYR psf (345 SGD psf) in 2020.

The psf price is over 4 times cheaper than a starter condo in an area like Woodlands. For buyers used to Singapore private property prices, Forest City condos are a steal. If you’re thinking of living in JB for the better value for money, it can be an option to consider, since it is very close to Singapore.

However, the future of Forest City is so murky that I would not bet on it as an investment. At the moment, things do not look good, with current prices below launch prices, indicating that people are selling at a loss.

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Forest City Brochure

You can find the Forest City brochure here. This brochure contains information about the development of the Forest City project, and can help you decide if it is promising enough for you to buy an apartment there.

There is no Forest City balance units chart. Due to poor sales, there is likely to be high availability of units in current and upcoming projects.

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Forest City Location

Forest City is located about 15 minutes’ drive from the Second Link bridge connecting Malaysia to Singapore. In fact, you can see Tuas from across the sea. For Singaporeans, this quick connection makes it possible to live in Forest City part- or full-time, while being able to return to the motherland whenever necessary.

At Forest City itself, the islands are supposed to be self-sufficient, with all amenities within easy reach. Other than the golf club and the Forest City Waterpark, there is also a beach within easy reach.

All this would make it a nice lifestyle destination, you might think. But in reality, due to the low occupancy rates, businesses reportedly close down constantly, and the place is filled with vacant shop units. Whether this will change in future remains to be seen.

Forest City is located in the Iskandar Special Economic Zone, which means you can buy duty-free alcohol and other goods.

Note that you will need to rely on cars and taxis to get around, as Forest City is designed to rely on the nearby highway.

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Forest City Floor Plan

You can find the floor plans for Regalia Park and Ataraxia Park at Forest City here. Regalia Park and Ataraxia Park consist of 1-bedroom, 2-bedroom, 3-bedroom and 4-bedroom apartments.

The 4-bedroom units measure 1,841 to 1,894 sqft (171 to 176 sqm) ,the 3-bedroom units 1,130 to 1,378 sqft (105 to 128 sqm), the 2-bedroom units 786 to 904 sqft (73 to 84 sqm) and the 1-bedroom units 517 to 635 sqft (48 to 59 sqm).

All units come with a balcony. As one of the selling points of Forest City is the coastal views, this can be an attractive draw in my opinion, especially the unit is located on the right floor.

In addition, the layouts tend to be quite space efficient, with minimal use of corridors unless necessary. I like this because it lets you maximise your bang for your buck.

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Forest City Rent

On PropertyGuru, Forest City units are currently being rented out for 700 MYR (201 SGD) to 7,500 MYR (2,155 SGD). The rental yield is actually very attractive. However, if you are buying these units to rent out, be aware that demand at Forest City is currently quite unpredictable.

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Forest City Condo Review

There is no doubt that Forest City is an intriguing development. If, like me, you’re interested in alternatives to expensive Singapore private property, you might be wondering if buying a Forest City apartment could be the ultimate lifehack.

I won’t lie, Forest City’s prices are so much lower than Singapore private property prices and the location so close to Singapore that it is quite tempting to consider buying a unit there.

However, it is very important to consider the uncertainty and controversy surrounding Forest City. If you’re thinking of buying an apartment to live in or use as a holiday home, it is worthwhile visiting Forest City yourself to see if you are bothered by the ghost town effect.

Unless you are a golfer who is mainly interested in gaining access to the Forest City Golf Club, you should take note that there are few shops and eateries staying consistently in business at the moment, and the lack of residents could raise security concerns.

From an investor’s point of view, Forest City is definitely not a safe or low risk investment. There is no telling how this development will pan out, so it’s not for the faint of heart.

Forest City JB Pros

• Low price
• Near golf course and water park
• Access to beach
• Near Second Link
• Could benefit from development of Iskandar Special Economic Zone

Forest City JB Cons

• Forest City is currently a ghost town
• Negative capital gains for current owners
• Businesses in the area not surviving for long
• Uncertainty surrounding future of the development
• Developer in financial difficulty

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