Constantly high construction costs in Hong Kong in recent years has become an issue of public concern. Our studies showed that the construction costs have increased by over 50 per cent in the past few years. Some international reports also revealed that Hong Kong is among the top three of the most expensive places in the world, ranking just below London and New York. In view of this, the Chief Executive and the Financial Secretary have instructed the Development Bureau to establish a dedicated office to strengthen coordination and management of cost control in public works projects and ensure public funds well spent......

The Government is adopting a multi-pronged strategy to increase land supply. Cavern development is one of the long-term initiatives. Land can be released for other uses by relocating some existing facilities to caverns. On this, we are taking forward the work steadily. In particular, the Stage 3 Public Engagement for Relocation of Sha Tin Sewage Treatment Works to caverns had been progressing well and was just completed in early March......

Last week, colleagues of the Development Bureau briefed the Task Force on Kai Tak Harbourfront Development of the Harbourfront Commission (HC) and the respective committee of the Kowloon City District Council (DC) on the proposed development of the waterfront public open space fronting the hotel sites at Kai Tak Runway. HC and DC members shared the vision of our development principle. They also provided a lot of positive comments and supported the general direction we put forward. In our proposal, the ownership of the harbourfront land will remain with the Government and the entire open space will be open for the public 24 hours a day. Meanwhile, we are also mindful of the worries expressed by some that development and management by the private sector would lead to commercialisation of the harbourfront and encroachment of the open space area for public enjoyment. Let me explain here to allay some of these concerns......

I have noticed that recently some market stakeholders and media said that the Government should slow down land sale, and relax or even abolish the demand-side management measures as soon as possible in view of the recent drop in property prices; otherwise the history of sharp drop in property prices during the Asian financial crisis in 1997 may recur. In this regard, I have to point out that there are significant differences between the current property market and that of 1997, and that they are not comparable. We should stay composed, but not panic unnecessarily......

The current-term Government is determined to address the housing supply-demand imbalance by increasing land supply. We need to put up residential sites for sale in a sustained and steady manner to cater for the housing needs of those who are not eligible for subsidised housing, and to give potential home buyers a clear anticipation of future housing supply so that they need not make hasty decisions......