"Free 100sqm Apartment After 5 Years" Chinese Company Introduces Bold Policy

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., based in Wenzhou, Zhejiang Province in southeastern China, recently announced a new HR policy in its recruitment notice: employees who work for more than five years will be provided with a free apartment.

This company specializes in manufacturing fasteners for automobiles and currently employs more than 450 people. Last year, its annual production value reached 490 million yuan (approximately 103 billion won).

Wang Jiayuan, the general manager, explained, "Our goal is to attract outstanding talent and retain key executives," adding, "Given that many workers in Wenzhou are from other regions, this reward is designed to secure skilled technical and managerial personnel for the long term."

The apartments provided are all located within 5 kilometers of the company, with sizes ranging from 100 to 150 square meters (approximately 30 to 45 pyeong). In Wenzhou, the market price for a used apartment is around 7,000 to 8,500 yuan per square meter (about 1.47 to 1.68 million won).

The company first signs the contract for the apartment under its own name, then remodels it 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. Already, one employee couple has been allocated a 144-square-meter home.

Wang stated, "This year, we provided five apartments to employees," and added, "Next year, we plan to allocate eight more, and over the next three years, we will sequentially distribute a total of eighteen apartments." He further noted, "So far, we have invested over 10 million yuan (about 2.1 billion won) just 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 managerial positions. Wang explained, "These roles require a high level of expertise and on-site experience," and emphasized, "Since these positions cannot be easily replaced in the short term, investing to retain long-term employees can actually lead to cost savings."

Chairman Tu Kaichun also stated, "Our goal is to reward middle managers and attract talent from major cities like Shanghai and Suzhou to settle in Wenzhou."

Once the announcement was made, the policy sparked envious reactions online in China. Netizens commented, "It's amazing to be able to buy a house after working hard for five years," and "This is much more effective than a pay raise. 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 depressed real estate market, providing housing as a tangible benefit is expected to be highly effective in attracting talent.