A piece of land on Queen's Hill will be used for building public housing flats, Secretary for Education Eddie Ng says.
Speaking to the media after attending a radio programme today, Mr Ng said the decision to use the land, which previously was to be home to a private university, was made partly due an estimated decline in secondary school graduates.
Another factor was infrastructure cost for the land, possibly reaching three to four billion dollars, he added.
Mr Ng said the Government remains committed to developing tertiary education, noting that 2,100 additional university places will be provided through different schemes according to the 2014 Policy Address.
