The Government has defended its land sale policy and denies it helped fuel the latest rise in home prices. Principal Government Land Agent Mo Chan-ming said the Government had never maintained any policy to sell land at high values. Mr Mo was responding to renewed attacks by property market players and developers who blame the Government's land provision policy for spiralling property prices. Critics say the Government's failure to release sufficient sites limits the supply of new flats and helps push up home prices. Mr Mo rejected the allegations and said Crown sites were sold at market value, determined by market demand. Mr Mo said the Government had withdrawn several Crown sites in the past few years, including residential lots, due to poor response. To boost interest from developers the Government eased opening prices on those sites and was able to sell them later. That indicated the Government's land sale strategy was based on market demand, he said. In January 1995, a 121,418 sq ft office site in Fanling was withdrawn from sale at an opening price of $600 million. Nine months later, the Government resold the site at more than $870 million after it was rezoned for residential use.