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Forest City: Malaysia’s $100B Luxury Dream Turned Ghost Town

Once hailed as a futuristic paradise, Forest City in Johor, Malaysia—just 2 kilometers from Singapore’s Tuas Second Link—was designed to host one million residents on four artificial islands. Developed by China’s largest real estate firm, Country Garden, the $100 billion project was envisioned as a luxury smart city with underground roads, sky-high parks, golf courses, water parks, and duty-free shopping.

The city promised greenery, modern amenities, and a dream lifestyle, but decades later, it has become a modern ghost town, echoing only with the sounds of birds and scavenging animals.

A Vision of Luxury That Never Materialized

The project, launched in 2016, was part of China’s ambitious Belt and Road Initiative. Malaysia’s government and investors had high hopes, expecting it to become a hub for global luxury living. Forest City targeted upper-middle-class Chinese buyers, offering a more affordable “second home” compared to pricey coastal cities in China.

Despite its grandeur, population density remains below 1% of the planned 700,000 residents. Many buyers were priced out, while others were discouraged by Chinese government advisories against overseas real estate investments.

Environmental Concerns and Isolation

Forest City’s construction involved massive land reclamation, which disrupted seagrass beds and mangrove forests, areas of international environmental significance. Deserted beaches are now home to warning signs for crocodiles, adding a surreal, eerie aura to the abandoned cityscape.

The city’s isolation also proved a hurdle. Though luxurious, its distance from major Malaysian urban centers left residents feeling disconnected, leading many to abandon the city shortly after settling.

Maintenance Amidst Emptiness

Despite the emptiness, Forest City remains well-maintained. Roads are clean, parks are lush, and public spaces are ready for the residents who never arrived. Its duty-free island status offers tax-free goods like alcohol, chocolate, and cosmetics—but these luxuries alone couldn’t attract the population needed to sustain a vibrant community.

A Second Chance: Special Financial Zone

Recently, the Malaysian government declared Forest City a Special Financial Zone (SFZ), hoping to revive the project as a hub for global business, banking, and fintech companies. Despite new investments and development efforts, the city’s reputation as China’s “capital tragedy” lingers—a cautionary tale of ambition, miscalculation, and environmental consequence.

Forest City remains a haunting symbol of how dreams of modern luxury can clash with reality, economics, and nature, turning what was once imagined as a paradise into a ghostly urban spectacle.

News Orbital