Caixin
Jun 27, 2020 02:04 PM
ECONOMY

District Tweaks Talent-Luring Program on Concerns of Abuse

What’s new: Some people are complaining after the Shunde district in Southern Guangdong province’s city of Foshan added a new residency requirement to an agreement offering homes at below-market prices to attract talent to the area.

New versions of the agreement, reflecting the new policy announced June 18, stipulate that anyone who doesn’t live and work in Shunde for at least eight years after buying a home through the program must return the property for the price they paid for it.

Multiple property owners who had started the home purchase process before the new terms were announced told Caixin they are refusing to sign closing documents and asking banks to put their loans on hold, saying the new clause is unreasonable.

What’s the background: First rolled out in 2017, the Shunde plan aimed to attract more highly educated and skilled professionals to the area by offering housing at below-market prices.

Many city and other local governments have rolled out similar policies in recent years, offering both homes and other incentives to lure such highly-skilled professionals to their areas. But some districts like Shunde may now fear such incentives could be used for speculation by people who have no intention of taking up long-term residence in the area.

Quick Takes are condensed versions of China-related stories for fast news you can use.To read the full Caixin article in Chinese, click here.

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Yang Ge (geyang@caixin.com)


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