Land acquired for the "Starter Homes" plan will not affect the supply of land for public housing.
This was the message from Chief Executive Carrie Lam, who held a press conference after delivering her 2017 Policy Address today.
She said as the land reserved for public housing is tight, supply from elsewhere is needed for starter homes.
Sites owned by property developers or to be bought from the Government will be an option.
Details on the plan will be discussed with legislators and the community, she added.