The final report of the Territory Development Strategy Review (TDS) sets ambitious housing targets, forecasting supply at 990,000 units between 2001 and 2011. The Government's short-term target is to achieve a housing production level rising from 70,000 flats this year to more than 85,000 flats annually from next year. The Government said this took account of new household formation, the rehousing of inadequately housed families and needs which would be generated by redevelopment, squatter clearances and upgrading. From now until 2001, the Government forecast a total supply of 331,500 public and private housing units. It said a broad analysis of plans and programmes indicated there was sufficient potential supply to meet the SAR's short-term housing needs. The TDS report identified the five potential principal sources of supply as strategic growth areas, reserved sites in non-strategic growth areas, build-back from redevelopment and reuse of existing sites, supplementary housing sites and rezoning. It forecast total supply of 477,000 units for the period between 2001 and 2006 and said about 31 per cent of this would come from strategic growth areas. These included Island South, West Kowloon Reclamation, Kai Tak-Kowloon Bay, Tseung Kwan O, Tung Chung-Tai Ho on Lantau Island and Whitehead in Sha Tin. Between 2006 and 2011, total supply would be about 513,000 flats, the report said. Subject to the outcome of feasibility studies, strategic growth areas over this period could provide 52 per cent, or 270,000 units, of the potential supply. This would involve development of additional strategic growth areas at the Green Island Reclamation, Tsuen Wan Bay Reclamation, and the northwest and northeast New Territories. Development on Lamma Island also would be explored for production of flats to meet needs. Studies were expected to identify further potential for development of another 129,000 flats after 2011. The Government's forecasts of housing needs were based on estimates that Hong Kong's population would grow to 7.35 million by 2006 and to 8.1 million by 2011. The TDS report expects a residential drift away from Hong Kong Island. It said an increasing number of SAR residents would move to live in the New Territories over the next decade. It projected the percentage of population living in the New Territories would increase to 42 per cent, or 3.06 million, by 2006, compared with 35 per cent in 1996. The percentage is expected to rise further to 44 per cent, representing a population of 3.54 million, by 2011.