Country Garden Triumphs in Landmark Forest City Purchaser Suits

In a major victory for Country Garden Pacificview Sdn Bhd (CGPV), the Johor Bahru Court has dismissed a series of consolidated purchaser claims seeking to invalidate Sales and Purchase Agreements (SPAs) for units in the Forest City mega development. The suits, collectively valued at over 2 million, alleged that the buyers were misled by misrepresentations and undue influence when entering into their property purchases.

Media Headlines Turned into Courtroom Battles

At the height of global scrutiny over China’s real estate crisis, international media outlets painted Forest City in a bleak light — a “ghost city” and “the most useless mega project in the world,” as described in a widely circulated BBC report and video. These portrayals sparked a wave of litigation from disenchanted purchasers seeking to walk away from their contracts, claiming they were induced by false assurances about the project’s future value and viability.

The plaintiffs relied heavily on these media reports to argue that their SPAs were void for misrepresentation. But the court found such arguments speculative and unsubstantiated.

IKC’s Defence and the Court’s Findings

Represented by IKC’s Dispute Resolution team led by Managing Partner, Kho Sze Jia, with Partner, Aleeya Elyana and Associate, Wong Poh Yee, CGPV defended four separate suits — JA-A52NCvC-49-03/2023, JA-B52NCvC-34-03/2023, JA-B52NCvC-35-03/2023, and JA-B52NCvC-36-03/2023 — which were tried together.

After a full trial involving extensive witness testimony and documentary evidence, the Court held that:

• The plaintiffs failed to prove any misrepresentation, fraud, or undue influence on the balance of probabilities;

• The SPAs were valid and binding, and the plaintiffs were bound by the contracts they voluntarily signed; and

• The developer’s counterclaims for specific performance of the SPAs were proven, entitling CGPV to costs.

Subject to the full Grounds of Judgment, the Court’s reasoning was clear: media narratives and post-purchase dissatisfaction cannot override contractual obligations freely entered into by informed parties.

This represents the first set of Forest City purchaser suits to proceed to full trial — and the outcome reinforces IKC’s consistent track record of successfully defending Country Garden in similar cases.

Consistent Judicial Trend – All Defended by IKC

This decision forms part of a broader pattern of consistent judicial affirmation in CGPV’s favour — all successfully handled by IKC.

In the Court of Appeal decision of Wong Yong Fook & Anor v Country Garden Pacificview Sdn Bhd, Civil Appeals J-04(IM)(NCvC)-69-03/2023, J-04(IM)(NCvC)-70-03/2023, and J-04(IM)(NCvC)-71-03/2023, the appellate court unanimously dismissed the purchasers’ appeals, affirming both the Sessions Court and High Court’s findings that the SPAs were valid and enforceable.

Similarly, the Court in Johor Bahru had earlier granted Summary Judgment for specific performance of the SPAs and dismissed counterclaims in:

• Country Garden Pacificview Sdn Bhd v Lim Hwa Ping (JA-B52NCvC-107-12/2021);

• Country Garden Pacificview Sdn Bhd v Nyuin Anak Angat (JA-B52NCvC-105-12/2021); and

• Country Garden Pacificview Sdn Bhd v Liew Kok Chong (JA-B52NCvC-108-12/2021).

Across all these cases, the courts consistently reaffirmed that purchasers who speculate on property markets cannot later rely on market downturns or public perception to avoid contractual obligations.

Further extending this line of litigation, another high-value case involving a single Chinese purchaser of ten parcels worth more than RM4 million is currently pending trial, scheduled for July 2026. IKC continues to represent CGPV in that matter, which will likely test and reaffirm the same principles now established through these earlier victories.

Judicial Principles Reinforced

The High Court's reasoning drew upon well-established Malaysian jurisprudence discouraging speculative property purchases. It emphasised that purchasers who pay only a deposit and later choose not to complete their transactions due to declining market conditions are engaging in speculation — conduct that the law does not protect. Purchasers must bear responsibility for their contractual commitments.

Equally, where a developer has fulfilled its obligations under the SPA and is ready to deliver vacant possession, forfeiting a 10% deposit is not considered an adequate remedy for non-completion. Allowing purchasers to withdraw freely would cause substantial injustice and financial loss to developers while undermining market stability.

By reaffirming these principles, the Forest City decisions send a clear message that Malaysia's courts will not condone opportunistic attempts to escape binding agreements. Contractual certainty remains paramount, even amidst shifting economic and media narratives.

A Precedent for the Industry

This decision marks an important win for Malaysia’s property and investment sectors. It affirms that contractual certainty remains paramount, even amid shifting market sentiment and negative publicity. For developers and investors, it restores confidence that projects of such scale — like the USD4.3 billion Forest City — will be judged by evidence, not headlines.

The case also underscores IKC’s expertise in navigating high-value, reputation-sensitive disputes that intertwine law, finance, and public perception.

As these suits continue to emerge, the judgment stands as a strong signal: Malaysia’s courts will uphold the sanctity of contracts against speculative misrepresentation claims.

Sze Jia can be reached at szejia@ikclaw.com and Aleeya can be reached at aleeya@ikclaw.com