(ECNS) -- Research institute China Index Academy said emerging "industry towns" built mainly for workers in industrial zones across the country generally failed to attract residents due to lagged development of infrastructure and public services.
The institute, which monitors China's property market, investigated infrastructure development, public services, population and livability in some industry towns around Beijing, Shanghai and other cities. Unlike satellite towns, these communities are developed to cater to certain industry clusters and are usually located far from cities.
The study showed industry towns didn't attract enough permanent residents as many people prefer to work in the zone and return home instead. Low-income or low-skill earners, including sanitary workers and security guards, choose to live in the new towns.
The study identified some progress in ensuring the basic supply of electricity, drinking water, natural gas and heat to the new towns. Currently, infrastructure development has centered on building roads while operators have tried to diversify sources of funds. China Fortune Land Development, a major operator of industry towns, plans to raise 706 million yuan ($105) through asset securitization for projects in Gu'an Industry Zone in Hebei Province.
Most industry towns have restaurants and supermarkets at low levels, but other services including healthcare, recreational facilities and education still lag behind.
The study said a new industry town is better developed in steps and more efforts are needed to improve living conditions to attract more full-time residents.
