MALAYSIA: All 156 units of Sunway Maple Residence Phase 1 in Sunway City Iskandar Puteri (SCIP), Johor, were sold out within just two hours of their launch last weekend.
This quick sell-out shows how important it is for a housing project to be affordable and well-located for locals and foreign buyers alike. In contrast, Forest City struggles due to its high prices and focus on foreign buyers.
The Edge Malaysia reported Sunway Maple Residence is Sunway Property’s first freehold landed homes project in SCIP. The project covers 15.18 acres with a gross development value of RM206 million (approximately S$62 million).
Phase 1 includes 156 double-storey terraced homes, ranging from 30ft by 60ft to 30ft by 90ft, with prices from RM1.22 million each (S$366,351).
Gerard Soosay, CEO of SCIP, attributed the swift sell-out to the project’s quality, prime location, and Sunway’s strong 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 said.
Although he mentioned that the double-storey homes were among “the highest price points” in Johor, the project offers a valuable living environment with a mix of “residential, commercial, retail, education, entertainment, and hospitality elements,” making it a top choice for buyers.
He also noted that most buyers were Singaporeans and Malaysians working in Singapore.
Sunway Property is already preparing for its Phase 2 launch, which will include 70 double-storey units by the end of the year.
In stark contrast, Forest City, a $100 billion development by Country Garden, continues to struggle with its “ghostly” reputation. Designed to house 700,000 people in high-rise apartments and villas, the project has been hampered by slow sales and low occupancy.
In 2018, Channel News Asia reported that the development’s high prices were a major barrier for many Malaysians, with an official from Country Garden admitting that the project’s focus on attracting Chinese buyers led to tensions in the local market.
According to the official, Malaysia did not want “the Chinese taking over Malaysian land” while admitting that “it is clear that the price of the property is too high for Malaysians and (we have) specifically marketed toward the Chinese.”
An unnamed salesman also said, “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.”
In November last year, Al Jazeera also reported how focusing on attracting Chinese buyers “doomed” Forest City.
Now dubbed “Ghost City”, Forest City is trying very hard to pull tourists in.
Despite its aspiration to become a popular short-haul tourist destination, boasting thousands of visitors and hosting events like golf tournaments and triathlons, these efforts have largely been unsuccessful.
Tourists from Singapore and Kuala Lumpur have noticed that Forest City is unusually quiet and less impressive than expected. Aside from a few visitors staying for golf or family vacations, many areas remain empty.
However, on Aug 6, Forest City announced a commercial sale featuring 40 ready shop lots on Island 1, with leases starting at RM600,000 (about S$178,963).
According to the New Straits Times, the sale achieved an 80 per cent take-up rate within an hour of its launch, with over 60 per cent of buyers being locals and Singaporeans and the rest being international buyers.
Fang Fang from Country Garden Malaysia-Singapore said this was Forest City’s first commercial unit sale. “The applications received for the commercial units were triple the available units,” she noted.
She added that the island’s duty-free status and the new Johor-Singapore special economic zone initiative have increased local interest.
She noted that inquiries have been focused on residential units and sub-sales and rental procedures. Could this commercial sale be the beginning of a turnaround for Forest City? /TISG