CNA spoke to 10 residents from the two developments in Johor - Forest City and Danga Bay - who expressed that they are concerned that the parent company’s financial woes will have a spillover effect on the completion of projects in Malaysia.
They worry that this may have an indirect impact on property value as well as their living environment, looking at Country Garden’s moves over its projects elsewhere.
According to news reports in Australia, the beleaguered China company is putting up for sale a 150-hectare undeveloped portion of its Windermere estate with an asking price of A$250 million (S$218 million).
A report by Financial Review also quoted the developer as saying that it plans to “divest” its last remaining project in Australia - the A$2 billion Wilton Greens Estate in Sydney.
Mr Samuel Tan, the executive director of KGV International Property Consultants in Johor, tells CNA that it is “quite inevitable” that debt issues by Country Garden China will also trigger negative sentiments among current residents and prospective buyers in Malaysia.