Introduction

MALAYSIA: A remarkable real estate phenomenon occurred last weekend when all 156 units of the Sunway Maple Residence Phase 1 in Sunway City Iskandar Puteri (SCIP), Johor, were snapped up within only two hours of their launch. This overwhelming demand underscores how crucial affordability and prime location are for housing projects aimed at both locals and foreign buyers.

Sunway Maple Residence vs. Forest City

In a stark comparison, Forest City is experiencing significant hurdles, largely attributed to its inflated prices and a strong focus on attracting international buyers. According to The Edge Malaysia, Sunway Maple Residence represents Sunway Property’s inaugural freehold landed homes project in SCIP, sprawling over 15.18 acres and boasting a gross development value of approximately RM206 million (about S$62 million).

These highly sought-after homes are double-storey terraced units, with sizes ranging from 30ft by 60ft to 30ft by 90ft, and priced starting at RM1.22 million each (S$366,351). Gerard Soosay, the CEO of SCIP, attributes the swift sell-out to the project's exceptional quality and its advantageous location, alongside Sunway’s esteemed brand reputation. "By offering a good product in a good location and being recognised as a trusted brand, we have earned the confidence of buyers," he stated.

Despite being categorized as among the "highest price points" in Johor, Soosay insists that the project provides a valuable living environment enriched with a mix of residential, commercial, retail, education, entertainment, and hospitality elements—making it a prime option for buyers. Interestingly, many purchasers are Singaporeans and Malaysians employed in Singapore.

As the demand grows, Sunway Property is already setting its sights on Phase 2, with plans to launch 70 new double-storey units by the end of the year.

Challenges Facing Forest City

Conversely, Forest City—a colossal $100 billion project by Country Garden—continues to bear the brunt of its “ghost town” image. Built to accommodate 700,000 residents in high-rise apartments and villas, Forest City has faced slow sales and dismal occupancy rates. In a 2018 report by Channel News Asia, the steep pricing severely limited Malaysian buyers, with a Country Garden official acknowledging that the project’s strategy to attract Chinese buyers sparked local market tensions.

One salesman emphasized the economic disconnect, stating, “The people working in the area probably can’t afford to live here. The majority of our buyers are foreign, and we are worried it would be an empty city if they don’t come.”

Following this direction, an Al Jazeera report last November deplored how the focus on Chinese buyers has "doomed" Forest City, which now struggles to attract visitors despite its ambition to be a vibrant short-haul tourist destination. Event endeavors, including golf tournaments and triathlons, have not significantly increased foot traffic, with many areas still desolate and underwhelming from tourists' perspectives.

A Ray of Hope for Forest City

However, a glimmer of hope emerged when Forest City announced a commercial sale on August 6, featuring 40 ready-to-occupy shop lots on Island 1. The response was brisk, with a striking 80% take-up rate within just one hour of launch, drawing interest predominantly from locals and Singaporeans, although international buyers also participated.

Fang Fang from Country Garden Malaysia-Singapore noted, "The applications received for the commercial units were triple the available units." The newly announced duty-free status of the island, coupled with the Johor-Singapore special economic zone initiative, may introduce more substantial local interest moving forward.

Conclusion

In summary, while Sunway City Iskandar Puteri thrives on a balanced design that caters to buyers' needs, Forest City must rethink its approach in order to revitalize its appeal and break free from the shadow of its current image. Curious to see how these developments unfold? Stay tuned!