Nazmi Hanafiya, a 30-year-old IT engineer in Malaysia, moved to Forest City, a sprawling residential complex built by Chinese property developers in the southern Malaysian state of Johor, a year ago. However, just six months later, he decided to leave what he called a "ghost town". He came back from the building he lived in with a creepy feeling, feeling that it was empty, only lonely for him and his thoughts.
Forest City is planned by one of China's largest real estate developersCountry GardenLaunched in 2016,Investments$100 billion. At the time, China's real estate sector was booming, and developers were borrowing large sums of money to build properties for middle-class buyers, both at home and abroad. Forest City is an eco-friendly metropolis that includes golf courses, water parks, office buildings, bars and restaurants and is expected to be home to nearly a million people.
However, after eight years of construction, the entire project is only 15% complete, and the occupancy rate is only a little more than 1%, with nearly $200 billionDebtIn comparison, the whole project was under tremendous pressure. ButCountry GardenExpressed optimism about the completion of the project.
Forest City is positioned as "for all mankind."Dream of paradiseBut in reality, it is mainly aimed at the Chinese domestic market, providing people with the opportunity to have a second residence overseas. However, due to its remote location and lack of amenities, Forest City is nicknamed a "ghost town" by locals, and very few people want to live here.
The desolate atmosphere of Forest City feels strange, like an abandoned resort. Children's playgrounds, classic cars, and staircases that lead to nowhere are all dilapidated. In the shopping mall, many shops and restaurants are closed and vacantArchitectureIt is also common on construction sites. Forest City has been described as a place in total darkness, with only a handful of lit apartments showing inhabitation.
And buy it in ChinesePropertyAspects are also facing difficulties, and many have purchasedPropertyof Chinese expressed dissatisfaction, some asked how to refund, and others were surprised by the ** drop.
China's real estate market has ushered in a crisis, and frustration is being felt everywhere. ** Expressed concern about the formation of bubbles and took measures to control them. However, these measures pose a series of problems. On the one hand, developers are at risk of breaking the capital chain and not being able to payDebtand continue to build projects. On the other hand,Real estate bubblesThe rupture has led to house prices**, manyBuying a houseare facing losses. This has caused many people to lose confidence in the real estate market and create pessimism.
In addition, some Chinese property developers have faced regulatory scrutiny and financial distress, causing their projects abroad to stall. Forest City is an example of this, developersCountry GardenAcknowledging the difficulties faced by the project, but expressing confidence that it can be completed.
In the current predicament, China's real estate market needs to find a way out. **Supervision needs to be strengthened to avoid excessInvestmentsand foam formation. Developers need to make prudent decisions to avoid blind expansion and high riskInvestmentsBuying a houseYou need to buy rationally and avoid over-borrowing and chasing high yields.
For projects like Forest City, developers need to rethink positioning and target audiences, optimizing supporting facilities and services to attract more people to live andInvestments。At the same time, it can provide support and policy support to promote the development and operation of the project.
Most importantly, the real estate market needs to be more transparent and stableInvestmentsprovides confidence. Only in this way can China's real estate market get out of its predicament and continue to develop healthily.