TOWNS and small cities are the key to China's next chapter in urbanization and the government should promote healthy real estate growth there, Zhu Yilong, a member of the National Committee of the Chinese People's Political Consultative Conference, said yesterday.

A better legal environment covering land use would help attract larger investors, thus spurring growth. Statistics show that 60 percent of migrant workers have moved to small and mid-size cities, creating a demand for housing.