TO co-ordinate its land policy, China has set up a committee to monitor the allocation of land. The committee brings together senior members of the Ministry of Construction and the Land Administration Bureau (LAB), enabling them to co-ordinate their policies on land supply and development to prevent a repeat of the recent building frenzy. At the same time, the LAB head has been appointed a vice-minister at the ministry to ensure that co-ordination begins at the top. ''With these arrangements, we should see a better management of land resources and supply for development,'' said Francis Lau, executive chairman of Francis Lau & Co (Surveyors) in a talk organised by the Hong Kong Society of Accountants. Mr Lau said the two bodies were now vigorously enforcing the land quota system for the provinces, first put in place early in the year to ensure that there was no over-building. These measures had successfully helped to cut down on the number of property projects and a healthier property market would emerge at the beginning of next year, Mr Lau predicted. Prior to the implementation of these measures, Chinese property firms were building an enormous number of apartments and villas, which could not be absorbed by foreign buyers, he said. Chinese developers put about 98,000 flats and villas up for sale in Hong Kong last year. In the first five months of the year, there were another 53,000. ''It was impossible for these units to be absorbed by investors in Hong Kong, Taiwan or Southeast Asia. We are talking about very limited effective external demand here. So the property market was really out of control,'' said Mr Lau.