Transfer of Ownership for 100?150m² Apartments
Plan to Allocate 18 Units Over Three Years
A mid-sized Chinese company has drawn attention by offering free apartments to employees as an incentive for long-term service.
Chinese Real Estate (This photo is not directly related to the article). Photo by Reuters Yonhap News
According to the South China Morning Post (SCMP) on December 21 (local time), Zhejiang Guosheng Automotive Technology Co., Ltd., located in Wenzhou, Zhejiang Province in southeastern China, recently announced a new HR policy in its job postings: employees who have worked for more than five years will be provided with a free apartment.
This company specializes in the manufacturing of automotive fastening components and currently employs more than 450 people. Last year, its annual production value reached 490 million yuan (approximately 103 billion KRW).
Wang Jiayuan, the general manager, explained, "Our goal is to attract outstanding talent and retain key executives," adding that, "Given the characteristics of Wenzhou, where many workers come from other regions, this reward is designed to secure skilled technical and managerial personnel for the long term."
All apartments provided are located within 5 kilometers of the company and range in size from 100 to 150 square meters (about 30 to 45 pyeong). The price of a used apartment in Wenzhou is currently around 7,000 to 8,500 yuan per square meter (approximately 1.47 to 1.79 million KRW).
The company first signs the housing contract under its own name and remodels the apartment before the employee moves in. Once the five-year service requirement is met, ownership is transferred to the employee, who only needs to reimburse the company for the remodeling costs. One employee couple has already been allocated a home with an exclusive area of 144 square meters.
Wang stated, "This year, we provided five apartments to employees," adding, "Next year, we plan to allocate eight more, and over the next three years, a total of eighteen apartments will be distributed sequentially." He further noted, "So far, we have invested more than 10 million yuan (about 2.1 billion KRW) solely in purchasing apartments."
Of the five apartments provided this year, two were given to employees who joined as new hires and were later promoted to management positions. Wang explained, "These roles require a high level of skill and on-site experience," and emphasized, "Since these positions cannot be easily replaced in a short period, investing to retain long-term employees can actually lead to cost savings."
Chairman Tu Kaichun also stated, "Our goal is to reward mid-level managers and attract talent from major cities such as Shanghai and Suzhou to settle in Wenzhou."
After the announcement, Chinese netizens responded with envy online, saying, "It's amazing to be able to buy a house after working hard for five years," and "This is much more effective than a wage increase. The company's reputation has definitely improved."
The industry is paying attention to this policy as a creative solution to the labor shortage in China's manufacturing sector. Especially amid continued sluggish domestic consumption and a downturn in the real estate market, providing housing as a tangible benefit is expected to be highly effective in attracting talent.
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