China should keep home prices from long time "abnormal increases" and divert profits made from home price hikes to the public through taxation, a senior property official said Friday.

Dong Zuoji, director of land planning department of the Ministry of Land and Resources, said home prices would continue to rise as the land in the world's fastest-growing economy is becoming increasingly scarce, but the government should use taxes to give the added value of the land back to society.

"China hasn't seen overcapacity in real estate sector on the whole, otherwise home prices wouldn't have gained so much," he said while attending a meeting held in Beijing.

Dong said the government would increase land supply for subsidized homes and adopt measures to prevent developers from hoarding land.

The government would also guarantee land use for high-tech, high added-value enterprises while limiting that of backward production projects.