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By Jin Jing (China Daily)
Updated: 2007-10-27 13:51

Property developers were told to focus on innovative land use to ensure supply and stabilize prices, at a forum in Beijing on Friday.

"To make full use of the country's land resources, real estate development should shift from a low-density and high-green ratio to a high-density and low-green ratio," Shu Kexin, deputy director of the Ministry of Land Resources' land use department, said on Friday at the China Real Estate and Finance Annual Forum.

"This model would ensure sustainable city development and could also solve the problem of traffic jams by making full use of vertical space," Shu said.

Analysts and market insiders said a shortage of land has led to soaring housing prices and panic purchases.

"Around 20 percent of the wealthier segment of the population have bought 80 percent of existing housing," said Li Guoping, board director of Syswin Consulting.

But a new property tax is expected next year in cities including Beijing and Shenzhen and in Jiangsu Province.

"The new property tax could curb speculative investment activities," said Shu.

Shu said property design standards should be updated to eliminate outdated regulations.

"New techniques to ensure economic use of land should be encouraged," said Shu. Innovative land use has already been put into practice in some rural areas.