KUALA LUMPUR (Reuters) - Malaysia said on Tuesday a committee would review the $100 billion Forest City real estate project, a day after Prime Minister Mahathir Mohamad said foreigners would not be granted visas to live there.

 

FILE PHOTO: Prospective buyers look at a model of the development at the Country Gardens' Forest City showroom in Johor Bahru, Malaysia February 21, 2017. REUTERS/Edgar Su/File Photo

 

Mahathir’s comments were a setback for Chinese developer Country Garden Holdings Co Ltd as it tries to revive faltering demand in the project on Malaysia’s southern tip.

“We will engage with all the agencies involved and also the developer. Then we see what is the best way forward,” the minister said.

Shares in Hong Kong-listed Country Garden, China’s largest property developer by sales, fell as much as 3.5 percent in early trade on Tuesday following Mahathir’s announcement.

 

FILE PHOTO: A view of construction next to villa unit showrooms at the Country Gardens' Forest City project in Johor Bahru, Malaysia February 21, 2017. REUTERS/Edgar Su/File Photo

 

Mahathir had also said Malaysia would not give visas for foreigners to live in Forest City.

The Forest City project, which is envisaged to eventually house 700,000 people on reclaimed land near Singapore, has faced uncertainty since Mahathir’s coalition won a shock victory at a May general election.

The project, along with several other infrastructure mega-projects backed by Chinese money, became fodder for Mahathir’s election campaign when he tapped into public displeasure over a perceived over-dependence on Chinese capital.

The statement, however, did not make a reference to the Forest City development.

“The government reiterates that it welcomes foreign direct investment that contributes to the transfer of technology, provides employment for locals and the setting up of industries,” Mahathir’s office said.

Country Garden Pacificview Sdn Bhd, a joint venture between Country Garden and the Johor state government to develop Forest City, said in a statement on Monday that Mahathir’s comments “may have been taken out of context”.

The company said Mahathir had responded positively during a meeting two weeks ago with Country Garden chairman, Yeung Kwok Keung, and that the company has complied with all necessary regulations in developing the project.

 

This story is reported by Joseph Sipalan; edited by Darren Schuettler & Simon Cameron-Moore for Reuters.

Malaysia will not allow foreigners to buy residential units in the $100-billion Forest City project in its southern state of Johor bordering Singapore, Prime Minister Mahathir Mohamad said on Monday.

The project has faced uncertainty since Mahathir’s coalition scored a shock victory at a May general election, as developer Country Garden Holdings Co looks to revive faltering demand for a city planned to be home to 700,000 people.

Guests look at a scale model of Forest City Golf Resort at the lobby of Forest City Golf Hotel
(Credit: CGPV)

“One thing is certain, that city that is going to be built cannot be sold to foreigners,” Mahathir told a news conference in Kuala Lumpur, the capital.

“We are not going to give visas for people to come and live here,” he added. “Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats.”

A Country Garden official said the company did not have any immediate response to Mahathir’s comments.

Opposition to the project helped drive Mahathir’s election campaign, during which he called it, and other Chinese-backed projects, evidence of his predecessor selling Malaysia to China.

Malaysians living in Johor complained of large numbers of Chinese people snapping up properties in Forest City, besides concerns of environmental damage, a glut in the property market, and the impact of land reclamation on fisheries.

Country Garden has developed just a fraction of the planned reclamation of 20 sq km (8 sq miles), where Chinese nationals accounted for about 70 percent of apartment buyers last year.

Reporting by Joseph Sipalan; Additional reporting by Clare Jim in HONG KONG; Editing by Clarence Fernandez

Country Garden, China’s No 1 property developer clocked in 334.52 billion yuan (US$52.3 billion or RM208.9 billion) in sales for the first five months of this year, up 37% year-on-year.

According to a report by Cision’s PR Newswire, the developer reported “a record” 70 billion yuan in sales in May.

Last year’s financial results revealed that Country Garden had contracted sales totalling 550 billion yuan.

The company achieved 500.3 billion yuan in completed contracted sales in 2017, “representing a high conversion rate of contracted sales moving to completion of 90%”, said the report.

PR Newswire also reported that “Country Garden Group had completed or was in the process of completing 1,456 projects spanning 220 prefecture-level cities as well as 768 districts and counties across 30 provinces, autonomous regions and municipalities”.

“Of those, 59% of the projects the company won in 2017 are in first- and second-tier cities, while the target third- and fourth cities make up to the remaining 41%.”

In Malaysia, Country Garden is the developer of the massive Forest City (pictured) in Johor. The project covers 14 sq km of land on four artificial islands with a gross development value of RM444 billion.

Its other projects in Malaysia include Country Garden Diamond City in Semenyih, Selangor; Country Garden Central Park in Tampoi and Country Garden Danga Bay, both in Johor Bahru.

Last year, Country Garden Malaysia launched a total of 1,178 new properties in Country Garden Central Park and Country Garden Diamond City.

In a recent report, Country Garden Malaysia regional president Jason Fu said the company is optimistic about the long-term prospect for the Malaysian property sector and expects the market to contribute higher sales to the group this year.

“Malaysia is a market where we pay a lot of attention to, due to its stable political situation, economic growth, the good relations between China and Malaysia, and the country’s strong support for China’s Belt and Road Initiative,” said Fu.

 

This article was first published on EdgeProp Malaysia.

 

Forest City Golf Resort will span eight sq km and have three 18-hole courses, luxury hotels and low-density residences

 

FOREST CITY by Country Garden Pacificview (CGPV) Sdn Bhd will have an international golf resort in the next phase of its development. According to the developer of the mega-project, the golf resort is located about 7km from Forest City and will span eight sq km. It will have three 18-hole golf courses, luxury hotels and low-density residences.

CGPV envisions Forest City Golf Resort as a leisure amenity to the larger Forest City environment that will draw the world’s elite to visit or reside there. “It is a core tourism asset that helps complement our other offerings and make Forest City more complete and attractive,” says Zhou Jun, vice-general manager of regional sales and marketing at CGPV.

The first golf course will be designed by legendary golfer-turned-designer Jack William Nicklaus and his son, Jack Nicklaus II. The elder Nicklaus is a retired American professional golfer who won a record 18 major championships throughout his career.

Today, Nicklaus devotes his time to designing golf courses and operates one of the world’s leading golf design practices, Nicklaus Design. At Forest City Golf Resort, Nicklaus has masterfully integrated the natural features of the site and a scenic river into the design of the 183-acre golf course.

The second golf course will be designed by renowned landscape architect and golf course designer Liang Guo Kun. Liang is also executive director and vice-president of Country Garden Holdings Co Ltd, one of the parent companies of CGPV. He is the landscape designer for many of the projects by Country Garden and “sets the benchmark for our landscape design”, according to Zhou.

A new expressway linking Forest City Golf Resort to Forest City will cut travelling time between the two destinations from the current 30 minutes to 15. The high speed rail that will link Singapore and Kuala Lumpur will offer easy accessibility to Forest City.

 

Artist’s impression of a golf course at Forest City Golf Resort

 

HOME FOR GOLFERS
The first tranche of villas at Forest City Golf Resort to be launched for sale will comprise 202 units, with land area ranging from 2,034 to 6,974 sq ft. They are billed as homes for golf aficionados from around the world, and will be no more than a 10-minute walk from the golf course designed by Nicklaus. Located by the river, the properties will have views of Forest City.

The villas in Phase 1 will comprise semi-detached and cluster houses that will have their own gardens, thus ensuring privacy. CGPV will hold a global launch on Nov 5.

Also in Phase 1 of the golf resort is a five-star hotel with 305 suites in two 11-floor towers. The hotel’s soft opening is slated for early 2018, while the golf course is expected to be completed later that same year.

The timing is perfect, Zhou reckons, as Jurong Country Club has been closed and Raffles Country Club will cease operations in July 2018 to make way for the Singapore-Malaysia high speed rail. “I think our golf resort will be very attractive to Singaporeans,” she says.

 

Zhou: I think our golf resort will be very attractive to Singaporeans

 

ICONIC MULTI-YEAR DEVELOPMENT
Forest City, located about 5km from the Tuas Second Link, is set to become one of the world’s most advanced cities. Its developer, CGPV, is a joint-venture company formed by Hong Kong-listed Country Garden Holdings and Esplanade Danga 88 Sdn Bhd.

According to Zhou, Forest City is a mega-project that will take 25 to 30 years to be completed. It will span an area of 30 sq km. There will be four reclaimed islands totalling 20 sq km. Forest City Golf Resort will occupy eight sq km, and two sq km will be set aside for the Industrial Building System factories. The factories will support the construction of Forest City and also supply material for the construction of other developments in Singapore and Johor in future.

Forest City is envisioned as a showcase modern city that caters for all the live-work-play needs of its population of 700,000. The project has a unique traffic infrastructure that is divided into three levels. Motor vehicles will move and park on the lower levels while the topmost level will be a tropical garden. The latter will be reserved for pedestrians and non-motorised transport modes such as bicycles.

To cater for educational needs, Forest City will host a variety of international schools. Among them is Shattuck-St Mary’s School, a renowned private boarding school in the US that will offer kindergarten to high school education. The construction of the campus has begun and the school is expected to enroll its first student cohort in August 2018.

A healthcare centre managed by Taiwanese healthcare provider MJ Group was completed in July. CGPV is collaborating with other worldclass hospitals and institutions to bring worldclass medical services to Forest City.

 

BUDDING COMMUNITY
Forest City recently celebrated the Mid-Autumn Festival with the public at its sales gallery, as it aims to build stronger ties with the local community.

In May this year, homeowners took possession of the first residences completed at Forest City. The 132-unit Kylin condominium is part of the luxurious Phoenix Hotel, which opened its doors last December.

 

Residents have moved into the 132-unit Kylin condominium, which is part of the luxurious Phoenix Hotel

 

According to Zhou, the 283-room hotel, part of a chain owned and operated by Country Garden, enjoys near full occupancy and is especially crowded with holidaymakers who love to shop at the adjacent Harbour Commercial Street during the weekends. The two-storey mall has eateries and stores, and the price of cosmetics and perfumes sold at the stores is among the most competitive in Asia-Pacific, says Zhou. The mall is popular with Singaporeans, who often head to Johor Bahru to shop and dine.

 

A store at Harbour Commercial Street, a popular shopping and dining destination adjacent to Phoenix Hotel

 

In 2019, a new mall will be added to Forest City. It is part of the Forest City Landmark, which will comprise apartments, offices and retail units. The strata office units and apartments at the Landmark will be launched for sale “very soon”, says Zhou.

According to Zhou, Singaporeans and Malaysians accounted for a substantial proportion of the sales this year.

 

Scale model of Forest City Landmark, a mixed-use development that is slated for completion in 2019

 

Condo units at Forest City have been sold to purchasers from nearly 30 countries and the number is set to grow. CGPV plans to successively open Forest City sales galleries in Dubai, Japan, Laos, Myanmar, the Philippines, Taiwan, Thailand and Vietnam. And there are plans to market Forest City in Europe and the US, says Zhou.

Forest City offers a wide range of real-estate products. Investors prefer two- and three-bedroom apartments, while those who buy the luxury villas are usually owner-occupiers. Prices of villas at Forest City Golf Resort start from $2 million, much lower than a similar product in Singapore, says Zhou. “Furthermore, all the properties in Forest City are freehold,” she adds.

 

This article appeared in The EdgeProp Pullout Issue 802 (October 23, 2017) of The Edge Singapore.