China’s New Mega Ghost City: No Body Lives There

China’s ghost cities are largely a result of rapid urbanization policies and speculative real estate investments. The government, in an effort to stimulate economic growth and manage urbanization, has invested heavily in infrastructure and housing development, often anticipating future demand that has not materialized as expected. Local governments, incentivized by land sales revenue, have also contributed by approving massive construction projects.

Additionally, developers, fueled by easy credit and the prospect of high returns, have built vast complexes of apartments, many of which remain unsold or unoccupied due to over-ambitious projections of urban migration, economic slowdowns, and high property prices deterring potential buyers. This has led to sprawling, underpopulated urban areas where the supply of housing far exceeds current demand, creating the phenomenon known as ghost cities.

‘Forest City’ In Malaysia is the size of Ney York city, but only contains hundreds of people.

The few living there say it’s depressing and are trying to leave.

China’s venture into international real estate development has led to the creation of what’s been dubbed a “ghost city” in Malaysia, known as Forest City. This ambitious project, located in Johor near the border with Singapore, was initiated by the Chinese property developer Country Garden under the Belt and Road Initiative with a staggering investment of $100 billion.

The plan was to build a sprawling eco-friendly metropolis on reclaimed land, promising to house a million people with amenities like waterparks, golf courses, and international schools. However, eight years into development, the reality has been starkly different; the city has been largely unoccupied, with only about 1% of its intended population actually living there. The high cost of units, aimed primarily at middle-class Chinese buyers looking for second homes, has made it unaffordable for most Malaysians, contributing to its ghost town status.

The situation at Forest City reflects broader issues within China’s real estate sector, where overambitious projects often lead to underoccupation. This ghost city’s development was predicated on the assumption of continuous demand from Chinese investors, which didn’t materialize due to several factors. China’s tighter capital controls have limited the outflow of money for overseas property investments, and the Malaysian government’s policies, including visa restrictions for Chinese buyers, have further complicated the scenario. The global economic downturn and the subsequent real estate crisis in China, exemplified by companies like Country Garden facing colossal debts, have cast doubts over the project’s future. Despite these challenges, Country Garden remains “optimistic,” though the project’s completion and occupancy rates remain uncertain.

Forest City’s eerie atmosphere has made headlines, with former residents like IT engineer Nazmi Hanafiah describing the experience of living there as lonely and isolating. The development’s location, somewhat isolated from major cities, and the lack of community and commercial activity led to it being dubbed a “ghost city” by locals and media alike. The project includes amenities like a marina hotel and shopping mall, but many shops remain closed, and the infrastructure stands largely unused. The Malaysian government has attempted to breathe life into Forest City by proposing it as part of a special economic zone to attract investment, but without a significant increase in residents or a resolution to the developer’s financial difficulties, the future of this once-heralded “dream paradise” remains bleak