The government yesterday said it would continue its policy of providing a steady land supply after it was reported that it planned to grant land to the KCRC to boost its value ahead of a possible merger with the MTR Corporation.
Secretary for Housing, Planning and Lands Michael Suen Ming-yeung said the government was still co-ordinating with the MTR Corporation and Kowloon-Canton Railway Corporation over land supply in a way which would maintain the stability of the property market.
'As the bureau head, I will certainly uphold my principle and will not compromise on any decisions which will crash the market,' Mr Suen said.
His comments followed a report that the government planned to grant land along the West Rail line to the KCRC in an attempt to increase the rail operator's value to help facilitate a possible merger with the MTR Corporation.
Such a move has the potential to increase the supply of land on the market and drive the property market down, analysts say.
It also follows the $9.42 billion paid for a prime Ho Man Tin site last month - the highest since the 1997 financial crisis - which raised concerns that the government might change its land supply policy to negotiate higher land premiums from developers.
