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. On Tuesday, the Government announced its land disposal programme for the next five years which will include releasing 650 hectares of land and selling 136,500 private flats and 208,900 public flats. Secretary for Planning, Environment and Lands Bowen Leung Po-wing on Tuesday said the sale of Government sites and the development of private flats depended heavily on developers. Analysts described the programme as 'neutral to negative' for the domestic housing market, saying there would not be a drastic oversupply of residential sites, although future private sites on offer in the 1999 fiscal year would increase substantially. Ms Chiu said production of private flats from sites to be sold in the next two years was on the increase compared with the average of less than 15,000 units last year. She estimated the supply of private units in the 2002 fiscal year at more than 51,000, which included the 39,800 flats available through auction and tender as well as redevelopment by developers and property projects at the new airport railway stations. Ms Chiu did not expect all of the sites offered to be sold as developers would be more selective in their choices and seek to acquire only the best locations.