Factories For Properties

In Septemdg-businessmen-close-factories-and-invest-in-propertyber, Dongguan was pushed into national headlines again, stemming from a report by the Hong Kong newspaper Economic Daily. It reported that a lighting factory owner surnamed Tang closed his factory in Dongguan two years ago and bought four apartments in his hometown of Guangzhou. According to the average property prices announced, 15,534 RMB per sq. meter in 2014 and 17,480 RMB in August 2016, he made approximately 700,560 RMB over two years. “The fortunate thing is that I bought the apartments; The unfortunate thing is that I didn’t buy more,” he said.

This news has once again brought the decline of Dongguan manufacturing back into national focus. Tang had over 100 workers at the peak, working hard for several continuous months and exporting quality lights. As orders decreased, prices dropped and labor costs went up, he couldn’t earn too much money. According to an unofficial statistic, there were over 4,000 factories that closed in recent years.

The thriving property market is not only limited in Guangzhou. Dongguan’s property prices have reached 22,000 RMB per sq. meter in the towns bordering Shenzhen, thanks to Shenzhen buyers. The good news about the Dongguan-Shenzhen subway connection in 2020 has dramatically boosted the market since the end of last year.


Category The Scene