(Yicai Global) Sept. 23 -- The administrator of Shaxian county in China’s southeastern Fujian province is offering grants to sellers of local delicacies, who account for almost a quarter of its resident population, who buy an apartment in the county in a bid to stimulate a sluggish real estate market.

Locals running food stalls selling Shaxian delicacies will be eligible for a government allowance of 1 percent of the total transaction price of any residential properties purchased between April 1 and Dec. 31, 2024, the county government said yesterday, referring to a document it released on Sept. 18.

Shaxian county, which covers a 1,815-square-kilometre area, is renowned for its delicious noodles and juicy wontons. Some 60,000 people out of a population of 272,000 are engaged in the snack industry which generates an income of around CNY10 billion (USD1.4 billion) a year.

While a number of places around China have introduced housing promotions aimed at wealthy farmers, Shaxian is targeting the rural self-employed, said Yan Yuejin, research director at think tank E-House Real Estate Research Institute. The move will unleash potential home purchase needs and help reduce inventory.

To be eligible for the Shaxian subsidy, locals need to submit business licenses to prove that they are involved in the snack sector as well as other records.

The local government has been strongly promoting its local food industry. It formed a guild to formulate development directions and strategies. It has also been encouraging the Shaxian Snack Group to expand into a chain, supplying ingredients to outlets. The group has even gone on to set up joint ventures in the US, Japan and France.

The burgeoning food industry boosted local residents’ per capita disposable income to CNY21,855 (USD3,080) per year in 2020 from CNY2,805 (USD395) in 1997, Zhang Xin, deputy director of the management committee of the Shaxian delicacies industry, said recently.

Shaxian's apartment prices are above average for the county level. Pre-owned apartments are changing hands at an average asking price of CNY9,060 (USD1,272) per square meter on real estate platform Anjuke. While a new apartment cost CNY7,588 (USD1,065) per square meter on average in the first half.

New apartment sales in Shaxian slumped 27.7 percent in the first six months from the same period last year to 23,500 sqm, according to the municipal housing development bureau.

Editor: Kim Taylor