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"As a result of an increase in land allocation for housing in the past two years, flat supply will increase steadily from 1997 onwards: to about 22,000 units in 1997, about 36,000 units in 1998, and more in the years to follow.
"At the top end of the market, the Government will dispose of surplus staff quarters to ease supply. We expect to sell up to 400 such flats in 1997-98. This represents about 25% of the annual supply of large flats, and is a substantial addition to the market.
"Apart from new flats, there are still some 34,000 vacant private flats in the market at the end of 1996. On average, fewer than 25,000 flats are taken up each year: for example, 20,500 units in 1996. There is sufficient supply to meet demand, especially in the mass market, and there is no cause for panic buying," Mr Wong said.
"In the next five years, we plan to release 587 hectares of land for housing development (327 hectares for public housing and 260 hectares for private housing), which represents an increase of 46% over the past five years. For private housing, the amount even represents 80% increase over the past five years.
"Apart from relying on new land, change in land use and increase in plot ratio are good sources of additional land and flat supply. In this regard, we have decided to convert about 100 hectares of industrial land into residential use in the next two to three years. We will also review the maximum permissible plot ratios on a case by case basis where infrastructure permits," he emphasised.
"The Government will take all necessary steps to identify land for housing and to accelerate housing production by streamlining and speeding up procedures for housing construction. A special task force, led by the Financial Secretary, will be set up shortly to examine these issues," he said.
End