In 2016, when China’s property giant, Country Garden, introduced Forest City under the Belt and Road Initiative, it was envisioned as a $100 billion mega-project, a dream paradise for all mankind.
Today, it stands as a haunting testament to the unfolding property crisis in China, reflecting an eerie, ghostly image of what was once an ambitious endeavor.
Originally marketed as an eco-friendly metropolis in Malaysia, Forest City aimed to attract nearly one million residents with promises of a golf course, waterpark, offices, and a vibrant city life.
However, the reality is far from the dream sold to aspirational Chinese buyers looking for a second home abroad.
The project, now eight years in, remains only 15% complete, with a mere 1% occupancy rate.
The barren landscape of Forest City tells a story of overambition, meeting harsh economic realities.
What was meant to be a bustling city now feels like an abandoned holiday resort. A shabby playground, a rusting vintage car, and empty storefronts in the shopping mall paint a picture of unfulfilled promises and a development that failed to capture the interest of its intended residents.
Read more here
At night, Forest City descends into darkness, with towering apartment blocks barely illuminated, leaving doubt about the actual habitation. The eerie silence of a complex designed for a million people resonates with the broader concerns in China’s property market.
China’s property crisis is a result of years of rampant borrowing by developers, prompting the government to intervene in 2021 with strict limits to curb speculation.
Xi Jinping’s emphasis on:
“Houses are for living in, not speculation”
This led to a financial squeeze on major developers, halting projects and leaving many incomplete.
Country Garden, grappling with the aftermath, was forced to abandon projects in Australia, highlighting the global repercussions of China’s property crisis. Forest City, once a symbol of ambition, is now a cautionary tale, showcasing that massive construction in remote locations is insufficient to attract residents.
The fate of Forest City mirrors the challenges faced by numerous projects across China, and it ultimately rests in the hands of the Chinese government. Recent reports suggest that Country Garden might receive financial support, emphasizing the intricate interplay between governmental measures and the future of China’s property landscape.
As the saga of Forest City unfolds, it serves as a microcosm of China’s property market, where ambition collided with reality, leaving behind a ghost town as a stark reminder of the nation’s ongoing property crisis.
Culled in by Fortune Omosola
