Chinese manufacturing district halves housing prices to keep talent

GUANGZHOU - A local district government in South China's Guangdong province plans to build more than 30,000 apartments to be sold or rented at low prices in the next five years to retain talent.

According to the government of Shunde district in Foshan city, soaring housing prices have driven many graduates and out-of-town employees away, prompting the favorable housing policy.

Shunde is home to many well-known manufacturing brands such as Midea, which acquired German industrial robot maker Kuka last year. Facing fierce global competition, the local government is actively promoting intelligent manufacturing, medicine, environmental protection and energy conservation.

"High-end talent is key to our industrial upgrading," said Huang Hai with the district government.

In September, the first real estate project was launched to offer 1,320 affordable apartments to qualified talent. The price was set at 9,800 yuan ($1,500) per square meter, while the average market price in the neighborhood was 20,000 yuan per square meter.

Huang said applicants should meet requirements in terms of educational background, occupational area and professional rank. The half-price apartments are not allowed to be resold within eight years of purchase.

Other cities in China such as Wuhan, Chengdu and Shenyang have also introduced preferable housing policies, including offering housing subsidies and bringing down rental prices, to keep talent.