Curb rise in land prices

If a sweeping property bubble that dras-tically inflates living costs and lifts wages is believed harmful for long-term economic growth, local governments should stop stoking house prices with higher land prices.

As an important source of revenue for local governments, the sales of land for property development have long been closely watched by local officials, eager to secure funds to support local development. However, as the central government goes all out to cool the property market to help tame inflation and avoid a property bubble, local governments should no longer feel comfortable with soaring land prices.

The average price of land in China's major cities during the second quarter reportedly increased 8.85 percent year-on-year.