Hong Kong needs to develop more land, as the number of households is projected to rise by about 500,000 to 2.93 million in 2044.
This will be an increase equivalent to 3.5 times the number of households in Sha Tin New Town, according to Secretary for Development Paul.
Speaking at a Land Supply Forum today, Mr Chan said Hong Kong has to look ahead and set aside internal differences in favour of rational discussion on land-use planning.
After the forum, Mr Chan told reporters that property prices are subject to a number of different factors, including land supply, the general economic situation and interest rates.
He urged potential property buyers to exercise caution when making such major investment decisions, as the residential market has seen some fundamental supply and demand changes.