‘Deserted ghost town’: Johor Country Garden condo residents concerned over unfinished projects amid China developer’s debt crisis

The foundation for block 18 has been constructed, but it remains an eyesore, and breeding ground for mosquitoes, according to residents CNA spoke to. 

A Singaporean owner in the King’s Bay section of the development – who wanted to be identified only as Mr Alvin – tells CNA that puddles of water have formed at the concrete area, and he fears this will facilitate mosquito breeding and lead to the spread of dengue in the estate. 

“We have had to tell (the condo management committee) – please clear the water. The resources needed to maintain the area are covered by the maintenance fee we pay so we feel that the burden to maintain this unfinished construction area is unfairly placed on the residents,” says Mr Alvin. 

Another King’s Bay resident who wanted to be known as Mr Morris, a foreign citizen who bought his unit in 2013, told CNA that the unfinished block 18 also includes a “sky garden area” which is part of the common facilities shared by residents in the estate. 

“The construction for the Sky Garden should have been completed before the handing over of the units to us as pursuant to the sales and purchase agreement, but it was not done,” he adds. 

Some residents across the different estates in Danga Bay have also expressed concern that they would not receive their strata titles, which is proof of legal ownership of their property. 

Mr Alvin, who moved into his unit in 2018, told CNA the process to obtain his strata title is ongoing due to “slow” administrative process by the developer as well as local government agencies. 

He fears that this process will not be completed given that the developer may be impacted by Country Garden’s financial issues in China. 

Singaporean Mr Mukhzin Hamid has also not received his strata title, despite having completed the purchase of his seaview three-bedroom apartment unit in 2015. He fears a scenario that his apartment may be seized by the government or liquidators.

“It seems unreal that this can happen to us. We have already paid hundreds of thousands of ringgit but something basic like the house deed cannot even be settled yet,” said the 52-year-old retiree.

Industry experts tell CNA that in the event that Country Garden Holdings in China defaults and goes under liquidation, there is a valid concern that residents in Johor would have to undergo an administrative process to submit proof to liquidators that they are indeed the rightful owners. This could incur some additional cost.

Real estate lawyer NG Vinod of Law Chambers of VinSa and Ian, tells CNA that the China parent company would have to realise all its assets including shares it holds with its subsidiary companies in Malaysia. This includes the developer of the Danga Bay project – Country Garden Danga Bay. 

He adds that if Country Garden Danga Bay is liquidated, residents who do not already own their strata titles might be forced to show proof that they are indeed the owner of the unit. 

“The liquidator will have to verify whether that particular unit was indeed sold to this particular individual and generally, liquidators will charge a fee for doing that,” said Mr Vinod.

He adds that the liquidator will likely charge a fee of “up to a couple of thousand of ringgit” to ascertain that these residents are the genuine owners of the property, further adding to their financial burden. 

CNA has reached out to Country Garden Malaysia for comment on whether the company is impacted by debt issues faced by its parent company in China, as well as whether residents’ concerns relating to unfinished projects, property value and process of obtaining strata titles can be addressed. 

On what Country Garden Malaysia can do to ease residents’ concerns, Mr Tan of KGV International Property Consultants stressed that the onus is on the company to clarify its financial position and whether it is impacted by the debt issues faced by the parent company. 

“Shaping public perception is so important,” said Mr Tan. “It’s now up to Country Garden to communicate its position publicly.”