When Malaysia announced its ambitious Special Financial Zone (SFZ) for Forest City in Johor, most headlines focused on the tax breaks for multinational companies. But as Johor Bahru’s short-term rental specialists, we spotted something far more interesting between the lines and it’s a potential goldmine for savvy property investors willing to think differently about this controversial development.
Having managed properties across JB since 2023, we’ve developed a sixth sense for spotting rental opportunities before they become obvious. The Forest City transformation might just be the most significant opportunity we’ve seen yet for short-term rental investors in our region.
From Ghost Town to Financial Hub: What’s Actually Happening
Let’s be honest, Forest City hasn’t become what everyone hoped it would. They dreamed big… planning a futuristic green city for 700,000 people, but the real situation looks very different.
While Country Garden says they’ve sold over 20,000 homes by 2022, the real story is in the actual occupancy. As of mid-2023, only about 8,000-9,000 people actually lived there – and 80% of them were just renting, not owners. Out of 28,000 built units, around 5,000 remain officially unsold (about 18%), but that’s not the whole picture. Many of the sold units are sitting completely empty – purchased as investments but with no one living in them.
Fast forward to 2025, and things haven’t really picked up. People still call it a “ghost town” because, sold or not, most units remain unoccupied.
But here’s where things get interesting. In September 2024, the Malaysian government took a big step by making Forest City a Special Financial Zone with some pretty sweet perks:
- Zero tax for family offices on their investment income
- Super low corporate taxes (0-5%) for qualifying businesses
- Just 15% flat income tax for skilled workers in the zone
- Big discounts on stamp duty when buying property
What caught our eye at RoomGuru is that things are starting to move. According to a recent news in the New Straits Times on April 23, 2025, 32 companies have shown interest in setting up shop there. 19 of them (from Malaysia, Singapore, and Thailand) are looking at family office setups, and two have already gotten the green light from regulators.
The Short-Term Rental Gold Mine That Everyone’s Missing
Look, while most property investors are playing the waiting game to see if their Forest City units will ever go up in value, we’ve spotted a way to make money right now. Here’s the deal:
1. Business Folks Need Beds
Let’s be real… when those finance people and company execs start coming to Forest City for work, they’ll need somewhere to stay.
And trust me, after a long day of meetings, the last thing they want is a tiny hotel room. They want space to spread out, maybe cook a simple meal, and feel at home. That’s where short-term rentals win big time.
2. House-Hunting Families Need Test Drives
Nobody just packs up and moves to a new place without checking it out first. Families usually make 2-3 trips to scout neighbourhoods and schools before committing.
We’ve in fact hosted several Korean families at our RoomGuru properties who were exploring JB before deciding to relocate. During these “sneak peek” visits, they don’t want hotels but they want to test-drive what living there actually feels like.
One Korean family stayed with us twice separate times over a year had specifically told us that staying in a fully-equipped apartment helped them understand the daily lifestyle here much better than any hotel could offer.
3. Singapore Workers Don’t Want Daily Border Hassles
We’ve seen this pattern for years now. Singaporeans working on JB projects start with the daily commute, then gradually shift to staying over a few nights a week to avoid the checkpoint headaches.
Eventually, some make the full move. This creates perfect weekend and mid-week rental demand – exactly the kind of bookings we’ve been filling since day one at RoomGuru 🙂
4. Companies Hate Long Hotel Bills
When businesses send people to set up new offices, those hotel bills add up fast. Smart companies quickly realise that putting their people in furnished apartments saves them serious cash, especially for stays longer than a week. Plus, their staff is happier with more space and the ability to cook occasionally instead of eating restaurant food for weeks on end.
Why Forest City Property Owners Should Start Now
Do you have an empty unit in Forest City? Or thinking about buying one while prices are low? Here’s what you need to know:
- Make your place special: Most apartments in Forest City look the same. But if you set one up for short-term stays with comfortable beds, good internet, and a few nice touches, you’ll do much better than owners still looking for long-term renters who aren’t there.
- Get good reviews before others: The first few rental places in a new area always get more bookings. Why? Because they already have good reviews while new listings don’t have any. We’ve seen this happen all over JB – starting early really works better.
- Earn money instead of paying fees: Maybe you bought hoping the value would go up, but it hasn’t yet. Instead of letting your place sit empty while you pay monthly fees, why not have it make some money? Even if you just cover your costs plus a bit more, that’s much better than paying for an empty apartment.
How RoomGuru Makes Life Easy for Property Owners
Since 2023, we’ve been helping property owners all over JB earn more by managing their homes on Airbnb, Booking.com, and Agoda. And honestly, what we do fits exactly what Forest City needs right now.
1. We know what cross-border guests want.
Most of our guests are from Malaysia or Singapore, and after handling so many stays, we get what they like; fast replies, comfy stays, and no nonsense. These are the poeple who’ll bring Forest City back to life.
2. We’re Superhosts for a reason.
People trust us because we reply fast, keep everything super clean, and always try to give guests an awesome stay. Business travellers especially care about this and they’re usually willing to pay more for peace of mind.
3. We handle everything so you don’t have to.
From chatting with guests, setting the right price, arranging cleaning, fixing stuff… even helping renovate if needed. We take care of the whole thing. You just sit back and enjoy your “passive income”.
Being Smart About the Risks
At RoomGuru, we don’t sugarcoat things. Every opportunity has its challenges, and Forest City is no different.
1. Getting there isn’t super easy yet.
Until the new train link to Singapore is ready (they say end of 2026), transport’s still a bit of a pain. We’ll need to plan around that for now.
2. People still call it a “ghost town.”
Let’s be real… Forest City still has a reputation problem. That means we’ll have to do more when it comes to marketing and helping guests see the real value.
3. It’s not an overnight miracle.
The new financial zone will grow bit by bit. At the start, only certain areas will see real demand. But that’s normal for big projects like this.
That’s why we’re staying sharp… we pick the right properties, market to the right crowd (especially business travellers), and manage everything flexibly so we can adapt as the market evolves.
What To Do If You Own A Property
Do you have a property in or near Forest City? Here’s how to get started:
1. First, let’s look at what you have: Give us a call, and we’ll check out your property to see how much it could make as a short-term rental. This is free, and there’s no pressure.
2. Maybe add a few nice touches: We might suggest some small changes to make your place more appealing to business people… like faster internet or a work desk. Nothing too expensive!
3. Get help before it gets crowded: Right now, there aren’t many short-term rentals in Forest City. That means less competition and better rates for the properties that are ready early.
4. Focus on the right guests: We’ll help set up your listing to attract the financial workers and business people who will be coming to the area soon.
Don’t worry if your property isn’t right in Forest City. As more people come to work there, rental demand will go up all across JB. We’re already seeing this happen in nearby areas.
Early Birds Get the Bookings 🐦
Forest City’s Special Financial Zone (SFZ) is giving this place a second chance. While some investors are still sitting on the fence, the short-term rental game moves fast… those who get in early stand to gain the most.
At RoomGuru, we’ve been managing short stays across JB since 2023, and we’ve got our eye on Forest City’s shift from the start. We already have the strategies ready like what to upgrade, who to target, how to stand out.
If you’re a property owner, this is your moment. Get in early, and let us help you make the most of it — while everyone else is still “waiting and seeing.” 😉
