DEVELOPERS will shell out a fortune to bid for various valuable commercial and residential sites to be released in the land sales programme this year, say property consultants. This is despite the substantial land supply being generated by the new airport-related developments. The Lands Department yesterday announced 27 sites would be offered for sale through public auctions and tenders in the 1995-96 land sales programme. James Hughes, Principal Government Land Agent, said the sales of the sites through public auction and tender would generate about $14.37 billion for the Government. William Wong, partner of property consultants Brooke Hillier Parker, said two urban area sites would attract strong market interest. These were the 37,458 square feet commercial site at Tamar Basin and the one in Hunghom Bay. 'The 37,458 sq ft commercial site at Tamar Basin is one of the few prime sites in the district offered for sale recently,' Mr Wong said. 'It can be the market indicator for developers' projection in prime commercial properties.' He said that the sale of the 78,082 sq ft commercial site in Hunghom Bay reclamation might help the Government reap a big revenue. Property agents predicted $5 billion plus from the sale of the commercial site at Tamar Basin. Two residential sites in urban areas - the 20,559 sq ft low-density residential site at Mt Kellet Road on the Peak and the 34,444 sq ft luxury housing sites on Stubbs Road - and the 73,168 sq ft site in Hunghom would be the focus of the market. However, Mr Wong said the supply of urban residential land under the current land sales programme was still limited compared to supply in the New Territories. 'It might intensify the price polarisation in the housing market,' he said. Augustine Wong, director of property consultants Chesterton Petty, said substantial increase in housing supply under the Private Sector Participation Scheme would put pressure on prices in the low-and middle-income home market. The number of flats that would be produced under the scheme will be 13,620, compared with 2,370 in the previous year. 'It will bring price pressure to low-middle income housing market,' Mr Wong said. The housing market in the New Territories would also be affected, some agents said. However, they said the programme could reflect the market situation. The Government put most of the industrial and godown sites on the market through tender, rather than through public auction.