BEIJING - China's high property prices may hinder the process of urbanization and cut the country's competitiveness, said Li Daokui, a member of the monetary policy committee of China's central bank.
He noted that most Chinese people could not afford an apartment in first-tier cities, such as Beijing and Shanghai. Li added that rising property prices have become a social problem in China.
Additionally, skyrocketing home prices are keeping talented young people from settling in major cities, thus hindering the process of urbanization and cutting the country's competitiveness in the long run, Li said.
He suggested governments at all levels wean fiscal revenue off land sales to bring home prices down.
A central bank survey published Sunday showed 72.2 percent of Chinese say property prices are "too high to accept" despite government measures to curb excessive gains in home prices.
Property prices in 70 major Chinese cities rose 9.3 percent in August year-on-year. Also, new home prices rose 11.7 percent while prices of second-hand homes increased 6.2 percent.