GUANGZHOU -- Tencent Holdings stoked jealousy among Chinese netizens with an announcement in late April that it had expanded a program to fund housing purchases for its employees. Workers can now receive interest-free loans of up to 900,000 yuan ($141,000) for their first home, an 80% increase in the upward limit.

"I want my company to follow their example," one commenter said.

As the rapid concentration of China's population in urban areas sends housing costs soaring, businesses are scrambling to provide support to ensure they can get and keep the workers they need.

Shenzhen, where Tencent is headquartered, had 17.56 million permanent residents in November, an increase of more than 50% from five years earlier. While an influx of talent has helped drive the city's economic growth, it has also pushed up housing prices. Condominiums that cost more than 100,000 yuan -- or well over $15,000 -- per sq. meter are not unheard of.

With the lending program, Tencent hopes to allay uncertainty about housing that could dissuade talent from joining the company.

Such measures are becoming a necessity for China's top companies. Huawei Technologies, also based in Shenzhen, has had condos built in neighboring Dongguan that it offers to employees at below local market rates. Drink maker Hangzhou Wahaha Group is scrambling to make rental housing available in its home city of Hangzhou.

The share of China's population living in urban areas grew 13 percentage points over a decade to 59% in 2018, according to United Nations data -- much faster than the 5 point increase for the world as a whole and the 7 point rise in Asia. Local authorities have tried to rein in skyrocketing housing costs with steps such as bans on flipping homes and making more rental properties available.

But while the public and private sectors are in agreement that securing labor is key to growth, their approaches sometimes put them at cross purposes.

The Development and Reform Commission of Shenzhen in late April released proposed rule changes for the city's household registration system. Notably, these include raising the minimum education level for a registration permit from an associate degree to a bachelor's degree, which the commission said aims to promote "coordinated development" of the population, economy and environment.

Relatively cheap labor from workers with associate degrees has supported the growth of internet companies and electronics manufacturers. Nevertheless, the city is prioritizing tamping down population growth to address housing prices and school shortages.

"There will be people who choose other cities," said an employee at a Shenzhen temp agency. "This is a new cause for concern for companies."