Nanfang Daily 09:09:57 September 28, 2023
According to 1H 2023 economic performance released by Dongguan Bureau of Statistics in July 2023, from January to June this year, Dongguan actively implemented the various policies and measures for promoting high-quality economic development and kept the economy stable overall, with steadily increasing investment, gradually recovering consumption, relatively higher growth rate for the service industry, though industrial production continued to face pressure from the external environment.
The unified GDP accounting results of Guangdong Province reveals that Dongguan’s total GDP in 1H 2023 was 526.21 billion yuan, a year-on-year increase of 1.5%, which was not so fast. Standing on the threshold of Q4, we can’t help but wonder, “What makes Dongguan resilient? Is Dongguan’s future worth looking forward to in the long run? Is it suitable for young people to live in?” Let’s rediscover the city before we dive into these questions.
A unique location between two first-tier cities
Renowned as the “world factory”, Dongguan lies between Shenzhen and Guangzhou and serves as the bond for interconnected development between these two first-tier cities. Leveraging the spillover resources from these two mega cities and relying on its own industrial strength, Dongguan has kept forging ahead, demonstrating an extraordinary urban personality.
A city’s regional functions are largely dependable on its geographical location in the city cluster. Situated at the center of Guangdong’s regional development landscape characterized by the core Pearl River delta, the costal economic belt, and the northern economic development area, as well as the national plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), Dongguan is able to integrate into the development of the city cluster, while receiving population and industry spillover from the first-tier cities nearby. That helps to create a virtuous cycle for Dongguan: a well-connected transport network brings together industries, which grow to attract an inflow of population, and then the population dividend works to revitalize the city.
As summarized in the Outline of Dongguan’s Medium and Long-term Plan for Modern Industrial System Development (2020-2035), Dongguan will build an overall modern industry system featured by “three poles” and “three belts”, with focus on upgrading the “seven industry carrying areas”. Eventually, the urban industrial landscape will feature “five major emerging industries, nine major modern service industries, four future-oriented industries, and ten traditional industries”.
Apart from robust pillar industries and unique geographical location, Dongguan is also a city of young people owing to its lasting appeal, as well as a dynamic, sleepless city with an endless supply of novel activities.
The report “Dongguan’s Population is Growing Steadily with Improving Structure” published by Dongguan Bureau of Statistic reveals that at year-end 2022, Dongguan had a permanent population of 10.437 million, or 8.2% of the province’s total, maintaining the third place in the province. Dongguan’s population development was improving continuously as indicated by the young and dynamic population age, improving degree of education, higher-than-national-average urbanization rate, and increasing talent attractiveness. The influx of young people confirms Dongguan’s urban strength while also making the city more dynamic.
With strong industrial support and assembling of a large population, the development of Dongguan seems to have been guided by a powerful force right from the very day the city was born. In a manner of speaking, Dongguan is unique among all cities in China.
Despite the new challenges that Dongguan now faces, we see from its development strategy a resilience that stems from not simply to adapt, but to explore and transcend unchartered territories.
Seeking a solution amid both challenges and opportunities
As a matter of fact, Dongguan is seeking a solution to these challenges.
As early as in 2012, Dongguan started to launch a series of key measures for advancing transformation. During the recent upgrade from traditional processing trade-dominated manufacturing to advanced manufacturing through sci-tech innovation, this “world factory” upholding the urban characteristic of “sci-tech innovation+advanced manufacturing”, sustained advanced manufacturing clusters with its strong industrial basis while also laying a solid foundation for turning Dongguan into a power in technological innovation-based manufacturing. Up to now, Dongguan has initially cultivated a tiered industrial cluster composed of a one-trillion-yuan electronic information sector, and a 500-billion-yuan equipment manufacturing sector. In 2022, three enterprises registered revenue of over 100 billion yuan and 25 enterprises registered revenue of over 10 billion yuan.
In terms of new energy resources, the lithium project in Machong Town, invested by Dongguan Ganfeng Electronics Co., Ltd, is already under construction. The industry is furthered strengthened by the strategic cooperation framework agreement inked between Dongguan Government and CATL. Dongguan is now expanding, at a faster pace, into new segments such as new energy and new materials to accelerate the transformation of its manufacturing industry and boost high-quality economic development.
On July 25, Guangdong Provincial Government chaired, during a survey of Dongguan, a symposium urging that Dongguan make a citywide effort to steady its industrial fundamentals; stabilize the stock while at the same time, expand the increment and tap the potential; take targeted measures to strengthen and optimize the electronic information sector; accelerate the development of high-end equipment manufacturing; and make efforts to upgrade traditional industries.
Going forward, Dongguan will continue to ensure the security of resource factors. It is reported that Dongguan has purchased and reserved 38,000-mu or so of land during the past three years, and will, as the next step, strengthen overall planning to build the “20+60” modern industrial parks and create a high-quality contiguous industrial space of no less than 100,000 mu in the coming five years. To attract talents, Dongguan will implement a new round of talent program on the slogan of “All talents come to Dongguan” to build the “capital of skilled talents”. As for financial support, credit resources will be guided to serve the manufacturing sector; twelve supportive measures will be adopted to promote the high-quality development of important manufacturing industrial chains, and continuous efforts will be made to increase financial support to the manufacturing sector.
Dongguan, a city of the future led by young people, is eyeing sustained, long-term development. This lively city, coupled with upgraded industries and a resourceful population, is attracting all types of high-tech industries, as well as an increasing number of well-educated high-quality youngsters. Rising up to the challenges, Dongguan as the backbone of new first-tier cities, is creating an urban blueprint of a better Dongguan in an innovative, pioneering and pragmatic spirit.
Taking multiple measures to improve the housing security system
As the economy picks up, how can Dongguan, a rising city, retain more young people to strive for a better future?
At the 2023 Dongguan Housing and Urban-Rural Construction Work & Housing Construction Industry High-Quality Development Conference, Dongguan Municipal Bureau of Housing and Urban-Rural Construction indicated that they would focus on advancing the affordable and comfortable housing programs. Specifically, they plan to put in place 30,000 units of government-subsidized rental housing, speed up the allocation of homes with shared ownership to ensure 3,000 units of supply on the market; They will work to raise the quality of construction projects, building two national standardized construction sites and 55 plus provincial safe and civilized demonstrative building site; They will improve the living environment by renovating 34 old urban residential communities and adding 50 elevators for existing houses; They will systematically plan a critical action in the reconstruction of old villages, or run-down neighborhoods; They will enhance the construction and management of affordable housing for farmers, publish the Guidelines for Construction Application and Approval of Affordable Housing for Farmers in Dongguan, streamline the application & approval process, and provide pre-review services.
From the reminder on diversified housing credit polices published by the “Dongguan E-Subscription” mini program early this year, to the updated processes and requirements for registration of housing purchase intention, the first three quarters of 2023 saw a clear intention of the government to optimize its housing purchase policies.
Realization of the government’s strategic vision and policy planning requires that all the relevant enterprises devote themselves to the construction of Dongguan.
On the one hand, Dongguan as one of the first cities in China to pilot housing with shared ownership, will vigorously develop and construct government-subsidized housing. On September 12, Dongguan Municipal Bureau of Housing and Urban-Rural Construction issued the Announcement on the DirectionalAllocation Plan for the Phase I Three-Restriction Housing Project of Dongshi Guan Xiang Yuan in Dalang Town. With that, all the five three-restriction housing projects planned in Dongguan have entered the market. According to information, apart from this project, Dongshi Qi Sheng Hua Yuan in Humen Town was the first to come onto the market, and also on sale this year are Dongshi Qi Kang Yuan in Chang’an Town, Dongshi Qi Hui Hua Yuan in Fenggang Town, and Dongshi Qi Jing Hua Yuan in Tangxia Town.
On the other hand, being optimistic about the future development of Dongguan, a number of leading Chinese housing enterprises, such as Wanke, Poly, China Resources Land, China Overseas Property, and China Merchants Property have been hammering at the local market through open, balanced and innovation-driven development, so as to empower urban construction with better and more comfortable products.
Confidence is a ringing horn that leads the way out of darkness. In responding to changes in the real estate market, relevant departments have unveiled a number of supporting policies that will give a lasting boost to the real estate enterprises and ensure smooth operation of the market.
We can see that both real estate enterprises and agencies have expanded their sales online by launching cloud-based sales services, with quite a few salespersons turning into live streamers informing customers of the latest market and product information. Real estate sales centers are now getting busy and transaction of second-hand houses are increasing with each passing day. Despite the cooler weather, the real estate market is recovering at a faster place with the arrival of the peak season.
Confidence brings hope and a better tomorrow. We believe that Dongguan’s real estate market is heading towards a more robust and sustainable future.
