Coastal Residence @ Forest City, Nusajaya

  • Caitlyn
  • 16 April 2019

Coastal Residence is a project of Country Garden Properties, a subsidiary of Guangdong, China-based developer Country Garden Holdings. Founded in 1992, the Hong Kong-listed firm’s first overseas project is the 9,000-unit Danga Bay at Iskandar, Johor in Malaysia. Its second project in the country is Diamond City in Semenyih, Selangor. Their other offshore developments include Ryde Garden in Sydney, Australia.

As for Coastal Residence, this development is part of the ambitious Forest City project, which has a whopping gross development value (GDV) of USD100 billion (roughly RM411.5 billion). Sited on four artificial islands with a combined land area of 13.86 sq km, the project will feature residential, commercial and industrial properties.

Coastal Residence Forest City Nusajaya Johor Aerial View

Located off the coast of Johor, one island will serve as the central business district and tourism zone (1,896 acres), another will be a hi-tech industrial zone (979 acres), one will be for financial and economic districts (405 acres), while the last one will be a forum and conference zone (145 acres). This mega project is being jointly developed by Country Garden and the state’s investment arm Kumpulan Prasarana Rakyat Johor.

Coastal Residence sits on 6 acres of freehold land, and will offer 482 units of serviced residences spread across 4 blocks. This subproject is targeted for completion by 2026, and is part of Forest City’s Phase I. When the entire Forest City project is completed by around 2030, it is expected to have a population of about 700,000 people.

Address: Forest City, Gelang Patah, 81550 Johor Bahru

Property Type: Serviced Residence

Land Title: Commercial

No of Storeys:

  • Block A: 22
  • Block B: 22
  • Block C: 22
  • Block D: 32

No of Blocks: 4

No. of Lifts:

  • Block A: 4
  • Block B: 4
  • Block C: 3
  • Block D: 4

Total Units: 482

  • Block A: 134
  • Block B: 134
  • Block C: 98
  • Block D: 116

Tenure: Freehold

Sales Gallery: Galeri Jualan Mentari, Presint Aurora, Jalan Forest City1, Pulau Satu, 81550, Gelang Patah, Johor

Site GPS Coordinates: 1.333774, 103.591237

Expected Date of Completion: 2026

Built-up area: 753 sq ft – 1,862 sq ft

Facilities:

  • Swimming Pool
  • Recreation Area
  • Gym Room
  • Sauna
  • Multi-function Hall
  • Jogging Track
  • Badminton Court
  • Tennis Court
  • BBQ Area

Launch Price: N/A

Price psf: From RM753 per sq ft

Maintenance Fee psf: N/A

Parking Bay/s per Unit: 1 for 1 room, 2 for 2 rooms and above

Project Details

Coastal Residence offers different types of serviced apartments measuring between 753 sq ft and 1,862 sq ft, which will house between 2-4 bedrooms and 1-3 bathrooms. Although launch prices have not yet been announced, the psf prices is said to start from RM753 per sq ft.

Unit Type

Built-Up

No. of Rooms

Block A

 

 

Y220 – A

893 sq ft

2R, 2B

Y220 – A1

904 sq ft

2R, 2B

Y220 – A2

926 sq ft

2R, 2B

Y220 – A3

980 sq ft

2R, 2B

Block B

 

 

Y221 – A

753 sq ft

2R, 1B

Y221 – A1

775 sq ft

2R, 1B

Y221 – A2

786 sq ft

2R, 1B

Y221 – A3

775 sq ft

2R, 1B

Y221 – A4

786 sq ft

2R, 1B

Block C

 

 

Y222 – A

1,184 sq ft

3R, 2B

Y222 – A1

1,141 sqft

3R, 2B

Y222 – B

1,389 sq ft

3R, 2B

Block D

 

 

Y223-A

1,851 sq ft

4R, 3B

Y223-B

1,862 sq ft

4R, 3B

The units are located on four blocks with a height of 22 storeys to 32 storeys, presenting residents with stunning views of the sea. The towers are also close to the marina commercial streets, so residents don’t have to travel far if they want to enjoy a bit of retail therapy.

Coastal Residence Forest City Nusajaya Johor Ocean

Apart from vertical gardens, the freehold development will feature a plethora of recreational and sports facilities, such as an infinity swimming pool, jogging track, gym, badminton court, and tennis court. It will also sport a sauna, BBQ area, conference hall and multi-function hall. Moreover, the developer has said the units will be furnished with branded furnishing and household appliances.

In addition, one good thing to know about Forest City is that it has been granted duty-free status, in a bid to transform the mega project into a popular shopping destination and tourist attraction. This means items sold at the malls there will be exempt from the sales and service tax (SST).

More companies are also expected to venture into Forest City as the authorities have pledged to offer incentives, like lower corporate taxes, to tourist-related firms as well as companies involved in education and healthcare. This means the mega project is being positioned into an employment hub.

Lastly, the authorities have permitted Forest City to set-up Customs, Immigration and Quarantine (CIQ) facilities, meaning it will become an entry point for foreigners and tourists going into Singapore or Malaysia.

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Location

Coastal Residence’s biggest selling point is that it’s situated within the Forest City mega project off the coast of Johor near the boundary of Singapore. This provides the development with the advantage of being part of an iconic and mammoth development.

Another upside is that these properties are highly-attractive to foreigners, particularly the Chinese, given its proximity to Singapore, and other areas of importance.

Coastal Residence Forest City Nusajaya Johor Luxury Hotel

For instance, residents of Coastal Residence will be able to travel quickly to the Malaysia–Singapore Second Link, Johor’s Administrative Center in Nusajaya, and the heart of Johor Bahru, while Johor’s Senai International Airport is about 40 minutes away. As for Singapore’s central business district (CBD) and Changi International Airport, the travel time is around 45 minutes and 60 minutes respectively.  However, please note that the development’s road network is still under construction.

Coastal Residence is also close to Iskandar Puteri in Nusajaya, where one can find many world-class attractions like Sanrio Hello Kitty Town, Pinewood Iskandar Malaysia Studios, and the LEGOLAND theme park.

This freehold development is also near employments hubs like Nusajaya Tech Hub and Southern Industrial & Logistics Clusters (SILC).

Coastal Residence Forest City Nusajaya Johor Site Plan

Apart from being near Afiat Healthpark, it’s also only a short drive to the EduCity education hub. Residents of Coastal Residence will however also enjoy having learning institutions close to home in the future, as Forest City is slated to have international schools like the University of the Incarnate Word (UIW), and Shattuck-St. Mary’s School within its township.

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Analysis

Name

Tenure

Average Price

Coastal Residence, Forest City

Freehold

From RM753 per sq ft

Horizon Hills

Freehold

From RM613 per sq ft

Setia Tropika

Freehold

From RM500 per sq ft

Pros

As mentioned before, the top perk of Coastal Residence is that it’s part of the highly-anticipated USD100 billion (roughly RM411.5 billion) Forest City project. Hence, if the plans for the development truly comes into fruition, property prices there would not only increase sharply, but the development will also become a highly desirable place to work and to live in. However, psf prices in the development is somewhat higher compared to two nearby freehold projects (Horizon Hills and Setia Tropika) as shown in the above table.

Coastal Residence Forest City Nusajaya Johor Waterfront Apartnemtn Aerial View

Cons

On the other hand, Coastal Residence’s advantage of being part of Forest City is also its biggest risk factor. This is because controversial projects by Chinese developers here are not only being affected by Malaysian politics, but also by the rules and policies imposed by Beijing itself.

For instance, after China’s government clamped down on foreign money transfers for overseas property purchases, Forest City was significantly affected as most of its buyers are from China. Consequently, Country Holding began courting other nationalities to buy homes in Forest City. The outlook of the project was also impacted after Prime Minister Mahathir blasted that homes in Forest City are beyond the means of average Malaysians.

Another downside is the allegation that Country Garden’s construction of so many homes in Johor is creating a supply glut that is undermining residential prices in the area. Nonetheless, buyers of homes in Forest City may be assuaged by the fact that the developer has a market capitalisation of HKD60 billion (roughly RM31.7 billion) and is touted to be one of Asia’s Top 30 companies.

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Summary

Coastal Residence Forest City Nusajaya Johor

To buy, or not to buy: that is the question. One problem about Coastal Residence is that Forest City has generated some bad publicity, and many Malaysians agree with PM Mahathir’s sentiment that homes in the mega project are too expensive for ordinary Malaysians. It also doesn’t help that in 2018, clients attacked offices of Country Garden in China after it had slashed prices by 30% to the detriment of early bird home buyers.

Also, the project’s future is uncertain. Forest City could become a stellar success, or a dismal failure just like the several ghost townships and malls in China. Nonetheless, government officials don’t want Forest City to flop due to the negative consequences. While it’s still a gamble to buy a home within Forest City, the decision is still yours, so decide wisely.

Assuming a unit price of RM820,000 and you take a 30-year 80% LTV loan of RM656,000 with an interest rate of 4.6%, your monthly debt instalments work out to about RM3,363 per month.

Based on property experts’ advice that your mortgage monthly repayment should not exceed 30% of your salary, property buyers will need a minimum monthly income of RM11,201 to afford a unit at Coastal Residence.

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Eric Wong

Caitlyn

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