US$2,000 for a home: woman in China who buys low-priced flat after relocating to small town trends online as exodus from costly cities grows

[Hamartia Antidote]

US$2,000 for a nice home highlights growing exodus from China’s costly cities

A declining former coal town in China is suddenly at the centre of a growing trend, attracting young people fleeing big cities in search of affordable housing after a woman bought a home there for US$2,000.

www.scmp.com

• Increasing numbers of jaded young people are abandoning big cities and large salaries in search of affordable housing and a more relaxed lifestyle
• After years of stagnant economic growth a former coal boomtown has been seeking to reverse its decline by luring young professionals from big cities

A Chinese woman who bought an entire unit for just US$2,000 after relocating to small Chinese city goes viral as more young people opt out of expensive city living in China. Photo: SCMP composite

A former coal-mining town in China has become internet famous overnight among potential homebuyers after the story of a young woman who relocated there and bought a 46-square-metre (500 sq ft) flat for just 15,000 yuan (US$2,000) went viral.
The northeastern town of Hegang in Heilongjiang ran out of the coal reserves that had propped up its mining-dependent economy several years ago and has faced stagnant economic growth ever since.
Recently, in an attempt to revive the town’s fortunes authorities have been trying to lure wealthy professionals from major cities to the town as increasing numbers of jaded young people opt out of the rat race and forgo large salaries in search of more affordable housing and a better work-life balance.

Many are opting for alternatives to the fast paced, cramped and expensive lifestyle China’s large cities offer younger workers. Photo: inews.qq.com

Famous for its low-priced homes, the rust-belt town near the Russian border has become a much-discussed topic online after a 25-year-old woman, surnamed Zhao, revealed online last week her happiness after purchasing a local apartment for just 15,000 yuan.

Zhao had been renting an apartment in Nanjing, the capital of Jiangsu province in eastern China, before she decided to take the plunge and move to downtown Hegang last year and bought the small second-hand apartment, she told the Star Video.

In comparison, the average house price in Nanjing was most recently valued at more than 32,000 yuan (US$4.460) for a single square metre, according to the real estate firm 5i5j. That means a flat of similar size as Zhao’s Hegang apartment would cost almost 100 times more to buy in Nanjing.

Zhao said she spent 50,000 yuan renovating her new home and another 1,000 yuan a month on a domestic helper to take care of daily chores like cleaning and cooking.

“It’s so cheap I can buy it without much effort, and I can decorate it according to my taste. I can live a life without the pressure of home loans,” she said.
She said her job as a digital artist allows her to work remotely from home in any city.

Zhao is not the first person to relocate to Hegang seeking an easier life in recent years. However, the low price she paid for her apartment has astonished many people online and prompted renewed discussions about tree-changing from big cities to regional areas and work-life balance goals among China’s city dwellers.

“This is super worth it. A smart decision,” one Weibo user commented on the story.

A search for second-hand homes priced at 50,000 yuan and below in a central district of Hegang returned dozens of results on the real estate app Anjuke.

The low home prices in Hegang follow a long-term talent drain in recent decades as the city lost its chief employer when the coal-mining industry closed down.

According to a national census in 2020, Hegang had a population of 891,000 by the end of that year, a drop of more than 15 per cent from 2010.

 

[Beast]

I thought some claim China property price collapse?

 

[MH.Yang]

I thought some claim China property price collapse?

In fact, the house price in Hegang has risen a lot in recent years.

Because many idiots who don't want to work have moved to Hegang.

Hegang is like Detroit only in terms of housing price and population, but its security and infrastructure are not like Detroit.

 

[Han Patriot]

In fact, the house price in Hegang has risen a lot in recent years.

Because many idiots who don't want to work have moved to Hegang.

Hegang is like Detroit only in terms of housing price and population, but its security and infrastructure are not like Detroit.

It's economics and most Chinese cities are well connected. Its like why some move to Texas 20 years ago.

 

[Mista]

According to a national census in 2020, Hegang had a population of 891,000 by the end of that year, a drop of more than 15 per cent from 2010.

While newcomers drawn by the promise of a slower and cheaper life have tried to settle in the city in the last few years, the continuing lack of economic opportunities has forced many to leave again.

The South China Morning Post spoke with two women lured to the city by its low home prices before the pandemic, but just one year later both had chosen to leave citing a lack of job opportunities.

It's great if your job allows you to totally work remotely like a freelance writer or a Douyin influencer. But you have to think twice if you are seeking a regular job or looking to raise a family.

Even in Japan there are also very cheap homes in rural areas, some even offering it for free with incentives. But young Japanese still prefer living in Tokyo.

There are more than 8 million empty homes in rural Japan, and local governments are selling them for as little as $500 in a bid to lure residents

In Japan, local authorities are giving away renovation subsidies to incentivize people to move into the country's rural areas.

www.insider.com

There are millions of vacant homes in Japan, and some of them are being given away nearly for free.

To find occupants for its millions of "akiya," or unoccupied homes, the Japanese government is enticing would-be homeowners with financial incentives like free properties and sizable renovation subsidies.

...

Japan is making it easy for interested parties to find these vacant homes.

Cities like Tochigi and Nagano have "akiya banks." These websites, developed by the city or municipal governments, list abandoned homes. Some of them are available for as little as 50,000 yen ($455).

The town of Okutama in western Tokyo even hands over aging and vacant buildings for free, per Nikkei. Some new residents have found creative ways to repurpose them, turning them into workshops and eateries.

"The program not only helps the old owners, who were struggling to utilize the properties and pay taxes, but also for the town by reducing the number of abandoned buildings that could collapse or otherwise pose risks in the future," a spokesman for the Okutama government office told Nikkei.

Some provincial governments have found that offering cash is one of the best ways to draw in remote workers.

Nikkei reported that Mikasa in the northern prefecture of Hokkaido recorded an 11% decrease in its number of empty homes when the city rolled out subsidies for child care and home purchases. Similarly, the town of Daisen in Tottori Prefecture saw a 7.9% drop in the number of empty properties when the local government offered 2 million yen ($18,229) grants to those who were renovating certain houses listed in its database.

In September, Nikkei reported on a program through which remote workers who maintain employment in Tokyo while working from the countryside will be given a 1 million yen ($9,114) cash grant. Meanwhile, those who set up IT businesses in rural Japan can apply for a grant of 3 million yen ($27,343).

 

[REhorror]

I did this to, went back to my hometown and found my job.

Big city sucks, the crowd, the noise, the smokes.

 

[Tom-tom]

In fact, the house price in Hegang has risen a lot in recent years.

Because many idiots who don't want to work have moved to Hegang.

Hegang is like Detroit only in terms of housing price and population, but its security and infrastructure are not like Detroit.

I am not aware of of detriots situation in detail. What do you mean by this Chinese province is not like detriot infrastructure and security? Can you pls elaborate?

 

[Mista]

I did this to, went back to my hometown and found my job.

Where is your hometown? Nowhere in Vietnam is too far from Hanoi/HCMC right?

OTOH Hegang is really secluded from other economic centers in China. It's near Siberia with an average low temperature of -20°C in the winter.

 

[REhorror]

Where is your hometown? Nowhere in Vietnam is too far from Hanoi/HCMC right?

OTOH Hegang is really secluded from other economic centers in China. It's near Siberia with an average low temperature of -20°C in the winter.

View attachment 890769

yes, about 130km outside of Saigon.

 

[MH.Yang]

I am not aware of of detriots situation in detail. What do you mean by this Chinese province is not like detriot infrastructure and security? Can you pls elaborate?

This article is correct in saying that Northeast China is like the Rust Belt of the United States.

Like the Northeast of America in the 20th century, Northeast China once had brilliant industries in the 20th century. It was once the industrial core of China. Like the Northeast of America in the 21st century, Northeast China declined in the 21st century. China's industrial regions have moved to all parts of the country, but they are unwilling to stay in the cold northeast.

The population of Northeast China is decreasing every year, and a large number of local people migrate to Hainan and other provinces. Hegang became the lowest housing price city in China because of the sharp decline in population.

I mean Hegang still has good infrastructure and public security like other Chinese cities, but it is far away from the economic center, and cold climate. This is where it is different from Detroit.

 

[Song Hong]

Many people cannot see statistics and geo-politics deep enough. One reason for Hegang property collapse is because -- the rural areas are too comfortable and people live in big bunglalows at very cheap price. No one wants to live in city.

There is some problems in Heilongjiang heavy industries but at the same time, the agriculture roar over the years. The increase in food production alone (not total production) is more than the food production of Canada.

The states farming workers are enjoying a very good life style while officially salary is not high.

The emergence of the North in food production has basically overturn many China geopolitical dynamics. Since Tang Dynasty the South support the north in food. Now the North support supports the South.