Lower living costs a major appeal

Zhang Ke moved to Chongqing a year ago, after spending two years in Beijing.

His salary as a civil servant in the city's Liangjiang New Area is two-thirds what he earned as a newspaper reporter in Beijing, but his life is much easier.

The 32-year-old recently bought a riverside apartment in downtown Chongqing for slightly more than 10,000 yuan ($1,600) per square meter, a fraction of the cost in either Beijing or Shanghai.

"Surging housing prices are a headache for every young person in a first-tier city. Once that problem is solved, you just feel relieved and suddenly there is much more room for development," he said.

Chongqing's average housing price has long been the lowest compared with Beijing, Shanghai, and Tianjin, the nation's three other municipalities directly under the central government.

In April, Chongqing's average housing price was 7,366 yuan per sq m, ranking 46th among major Chinese cities, according to real estate market data provider cityre.cn .

In comparison, the price was 34,977 yuan per sq m in Beijing, 25,849 yuan per sq m in Shanghai, and 13,723 yuan per sq m in Tianjin.

"I decided to move to Chongqing because I thought there would be some opportunities resulting from the development of the nation's western regions. Now I'm thinking of staying here for good," Zhang said.

"The skills shortage is the biggest challenge faced by inland cities such as Chongqing," said Tang Zongwei, a senior local government official, explaining that coastal cities have attracted most of the nation's skilled employees.

Chongqing's advantages have become more apparent in recent years, due to surging housing prices in coastal cities.

In addition, the local authorities have come up with all a number of favorable policies to attract skilled employees, including tax reduction for senior executives, and low-rent apartments for college graduates.