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Real estate prices are too high in China and property developers should be levied heavier taxes, said Long Yongtu, China's former top WTO negotiator, at "Dialogue-China" forum in Nanjing, capital of East China's Jiangsu Province, reports Oriental Morning Post.

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"The current real estate prices are so high and the people cannot afford it," said Long. The major reason for the high prices is because supply fell short of the rising demand, he explained. The government should adopt strict measures on vacant housing. Higher taxes should be imposed on vacant housing on condition that it 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, said Long. Most Chinese people need to solve their housing problem by leasing for a long time.

The problem of a big influx of money flowing into the real estate market was also discussed at the forum.

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