"Finish a Marathon, Get $15,000 Off a Home"… Extraordinary Measures by Chinese Local Cities Amid Real Estate Slump

Local cities in China that are experiencing a downturn in the real estate market are drawing attention by introducing unique real estate policies that combine marathons and housing.

According to Chinese media outlets such as Cailianshe on April 14, Wuxi City in Jiangsu Province announced a new real estate policy the day before.

Marathon. Photo is not related to the specific content of the article. Pixabay

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The policy announced by Wuxi City focuses on helping talents settle and improving residents' housing conditions. First, subsidies for talents are provided in varying amounts depending on educational background and skill level. Junior college graduates (advanced technical positions) receive a lump sum of 80,000 yuan (approximately 1.738 million won), university graduates (technical positions) receive 120,000 yuan (2.608 million won), those with a master's degree (senior technical positions or higher) receive 250,000 yuan (5.433 million won), and those with a doctorate receive 400,000 yuan (8.693 million won). The city explained that these subsidies can be directly used to pay for home purchases, including the down payment, thereby reducing the initial financial burden.

There are also support measures in place to help existing homeowners improve their housing situation. If a household without a home or a household owning a small home of 75 square meters or less purchases a new home, the city will provide a subsidy of 15% of the purchase price (up to 200,000 yuan or 4.346 million won). Married couples are eligible to apply as long as either spouse meets the requirements.

The application requirements have also been eased. Anyone under the age of 40 who does not own a home and has paid social insurance for more than three months, with at least a junior college degree or advanced technical qualification, can apply. When companies make group purchases of five or more homes, the same individual subsidy is given to the talent, encouraging businesses to attract skilled personnel. However, the homes cannot be resold for five years after registration of ownership, and guaranteed housing or properties acquired through auction are excluded.

Wuxi City has also introduced distinctive policies that combine sports and residential incentives, such as offering home purchase discounts of up to 80,000 yuan based on performance to marathon participants. The city, in cooperation with 43 real estate development companies, implemented a preferential home purchase policy for marathon participants, allowing them to receive up to 80,000 yuan in support when purchasing newly built homes in designated complexes.

Not only Wuxi City, but also other local cities such as Nanjing in Jiangsu Province, Jingzhou in Hubei Province, and Xixian New Area in Shaanxi Province are providing housing purchase subsidies to marathon participants. In the case of Nanjing, it is known that participants receive 20,000 yuan (435,000 won) upon registration, 60,000 yuan (1.303 million won) for actual participation, and 100,000 yuan (2.173 million won) for completing the marathon.

The subsidies earned by participating in marathons can be used when purchasing homes in housing complexes designated by the local government. Rather than being paid in cash, the subsidy is deducted when making the payment for the home.

It is being evaluated that local Chinese cities are attempting innovative marketing by combining the marathon craze with policy measures in order to address the real estate slump, which has been a limiting factor on economic growth since 2021.

Li Yuja, chief researcher at the Guangdong Housing Policy Research Center, told the Chinese media outlet Southern Metropolis Daily, "The 'marathon-linked home purchase' campaign is well aligned with the recent policy to reduce the inventory of unsold homes," adding, "On the other hand, it has also diversified the marketing methods of real estate developers."

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