The Government's latest five-year land disposal programme could allow developers to manipulate prices in the private housing market, according to analysts.
Analysts said developers could be selective in deciding which sites to buy, allowing them to control supply coming on to the market, which would have a knock-on effect on prices.
GK Goh Securities property analyst Roger Luk said average production - as part of the land supply package over the coming five years - would be 41,780 public and government-subsidised units and 27,300 private units per annum.
This compares with a previous target set by the Government of 50,000 public and 35,000 private units.
'The decline in the supply of public flats removes previous worries that oversupply of public housing may drag down private residential property prices,' said Mr Luk.
'But the latest land disposal programme shows that housing production will rely heavily on private developers.' DBS Securities analyst Winnie Chiu said the five-year programme provided developers with more flexibility to regulate the supply of land in the private market.
