Private sector
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I turn now to the private sector. We rely on private sector developers to meet about 40% of our total target production of over half a million new flats over the next six years. I am fully aware of the difficulties which developers sometimes face in acquiring land and in obtaining all the Government approvals required before they can deliver flats to the market. For this purpose, we have set up a Housing Project Action Team to facilitate this process for any major development -- major in the sense that it will contribute 500 or more flats to our production target. Developers are encouraged to approach me or my colleagues in the Housing Branch with projects where they are experiencing difficulties. Members may wish to know that we are already monitoring or fast-tracking in this way over 50 projects, involving more than 120,000 flats throughout the territory.
While we recognise and, indeed, actively support the role of the private sector in achieving our housing production targets, we must be careful to resist the siren's calls (if I may borrow a phrase from my colleague the Financial Secretary) of those who ask us to relax significantly or even abandon our measures to contain speculation in the residential property market. As several Members have rightly pointed out, the measures introduced by the Government in June last year have successfully dampened speculation and stabilised property prices. The residential property market is now dominated by end-users who actually purchase property from developers first-hand. Developers realistically react to changed market sentiment by cutting prices and by offering attractive sales packages and supplementary financing. Housing affordability has also improved. We are satisfied that the anti-speculation measures are achieving the desired results without undue interference in market forces. We do not intend to introduce further restrictive measures, but we must still guard against the rekindling of speculation. Hence, we will keep a close watch over developments and will continue to review the situation on a regular basis.
Meanwhile we have received proposals to increase the operational flexibility of both developers and purchasers so as to facilitate property transactions within the existing regulatory framework. We are examining these proposals with great care, to see whether some operational flexibility can be allowed, without giving rise to speculative activities and without compromising the integrity of our price-stabilisation package.