Urban sprawl may be lower than last year, but it is still a national concern, said Minister of Construction Wang Guangtao yesterday.

"Many cities have shown a strong desire to increase urban construction and the pressure to heat up the sector looms large," Wang said during a national construction conference held yesterday in Beijing.

He urged governments at various levels to slow down the rapid urbanization sprawl, which is encroaching on the country's arable land and cutting its resources.

In 2004, the government succeeded in controlling investment in urban utilities such as heating.

The tightened measures in land and credit supply led to slower growth. Between January and November, investment in utilities grew 23.4 per cent.

The growth is also slower than the growth rate of the national fixed asset .

While tightening its grip on construction of villas and luxury homes, the government plans to build more economic apartments for middle- and low-income home buyers in 2005, said Wang.

He also said the government is considering measures to meet the housing needs of farmers-turned-workers in cities.

Currently there are 94 million such workers earning their living in cities, but most of them have to live in rented apartments or work sheds because of their low income. Household registration requirements also get in the way of economic home purchases.

Wen Linfeng, deputy branch director of the ministry's policy research centre said urban residents also have to deal with a lack of available housing.

Statistics indicate that the invest-ment in low income housing this year gained 4.2 per cent compared with 2003 while investment in real estate as a whole grew by nearly 30 per cent.

"Real estate developers are eager to build villas and high-end apartments because of the large profit potential and they show less interest in economic apartment construction because of squeezed profits," said Wen.

Source: China Daily