Discounted housing the latest front in Chinese cities’ battle for graduate talent
The central city of Wuhan is trying to get ahead of others with incentives, but some graduates say creating appealing jobs is more important than financial giveaways
The central Chinese city of Wuhan is offering 20 per cent discounts on house purchases to college graduates in an effort to persuade them to stay, upping the ante in a fierce battle to retain talent that has broken out among the nation’s regional cities.
The city’s party secretary, Chen Yixin, made the offer at a promotional event over the weekend, and also raised the possibility of a minimum annual salary to graduates considering staying.
The attractiveness of second-tier cities like Wuhan has been growing among young professionals in recent years as they worry about surging living costs and skyrocketing home prices in the big first-tier cities – Beijing, Shanghai, Guangzhou and Shenzhen. It has been helped by more jobs being available in regional centres and by efforts in the big cities to curb the number of people moving in.
According to a survey of college graduates by employment website zhaopin.com this year, the so-called new first-tier cities, a term that refers to big regional centres like Hangzhou in eastern China and Chengdu in the southwest, have eclipsed the top-tier cities as intended destinations, while in terms of actual employment they are on a par.
Those who opted for second-tier cities generally cited less pressure, a better work-life balance and proximity to their own hometowns as reasons.
Because of this rising interest, cities such as Chengdu, Jinan, Changsha and Nanjing have been forced to compete to lure college graduates.