The government of China's northernmost province Heilongjiang says it aims to reduce a housing glut to a "reasonable level" by 2018 through restricting land sales and offering subsidies to rural folk looking to buy homes in urban areas.

Heilongjiang, a traditional heavy industry powerhouse that shares a border with Russia, is one of the many Chinese provinces hit by huge housing overhangs as economic growth slows. China’s government has set destocking its main goal for the real estate sector this year. Cities in Heilongjiang that take more than…