[photopress:Long_Yongtu.jpg,full,alignright]Long Yongtu, China’s former top WTO negotiator, at ‘Dialogue-China’ forum in Nanjing, capital of Jiangsu Province, is reported in the Oriental Morning Post as saying real estate prices are too high in China and property developers should be levied heavier taxes.
Long Yongtu said, ‘The current real estate prices are so high and the people cannot afford it.’ He explained the major reason for the high prices is because supply fell short of the rising demand.
The government should adopt strict measures on vacant housing. Higher taxes should be imposed on vacant housing which is idle for a certain period of time.
Besides necessary macro-control measures, the key method to resolve the problem of high housing prices is to change people’s ideas that they must buy commercial housing.
Long Yongtu said most Chinese people need to solve their housing problem by leasing for a long time. Which may well be true but he did not explain how you change the engrained habits of a nation.
Source: China Daily