Fewer than 60 China buyers want to withdraw from Forest City: Country Garden

Despite the temporary closure of China showrooms promoting the massive Forest City project planned in Malaysia last month, fewer than 60 buyers in China have asked about cancelling their bookings, Chinese developer Country Garden Holdings (CGH) said on Thursday (Apr 6).

The company said it sold more than 15,000 residential units under the project last year. Chinese nationals accounted for 70 per cent of its buyers for the 18 billion yuan (US$2.61 billion) worth of apartments, it previously stated.

The developer shut its sales galleries in China for the multi-billion dollar project in Malaysia’s ambitious Iskandar special economic zone from Mar 13 “to better fit with current foreign exchange policies and regulations” and as the firm looked to diversify its development strategy.

The temporary closure of the showrooms meant that mainland Chinese buyers interested in the Forest City project had to find their own ways to CGH’s sales gallery in Iskandar Malaysia.

The firm said in a statement on Thursday that it is “currently in discussion” with the buyers who had enquired about pulling out from the project.

A penalty clause ranging from 10 per cent to 30 per cent is applicable if the buyer decides to default on the payment or cancels the sales and purchase agreement after it is signed, as this is deemed a breach of contract, the developer stated.

The company also said that it was “on track” to build and deliver the residential commercial units for Forest City on schedule.

It added that it expects more diversified revenue from sales and rental for a variety of properties commercial and residential properties and is in “positive discussions” with more than 30 companies and investors in the tourism, education and healthcare sectors.

“Attracting businesses into Forest City paves the way for the formation of an economic hub at Iskandar Malaysia and we expect to make some announcements in the coming months.”

Source : Channel NewsAsia – 6 Apr 2017

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