On air: Chief Executive Donald Tsang (right) answers public queries about the Policy Address on a joint radio phone-in programme.

Chief Executive Donald Tsang has given assurances the Government will closely monitor the property market, noting prices of flats for the general public are still comparatively stable.

Attending a joint radio phone-in programme today, Mr Tsang told callers only a few extra-luxury units are selling at very high prices, while ordinary flats' prices are still lower than they were around 1997. People are also more able to afford them now.

He said the Government will ensure there are not  substantial price fluctuations, noting ups and downs are normal in the usual market situation.

He suggested prospective first-time home buyers consider units which are smaller or located in the suburbs, as well as their affordability. Grassroots people can apply for public housing, and normally they will be allocated a unit in three years.

Six industries

On the six industries he identified in his Policy Address yesterday as having great development potential, Mr Tsang said they can help buttress the four traditional pillar industries. The proposed release of industrial buildings will remove obstacles and support development of various industries, sustaining Hong Kong's competitiveness.

Although the six industries contribute only about 6% to 7% of GDP now, Mr Tsang said if the ratio can double in the future, tens of thousands of jobs can be created.

He believed the construction sector would not experience  employment difficulties in the next 10 years as projects of different scales will be launched progressively after more than $120 billion was approved for works earlier this year.

Noting it is a global situation to see the youth jobless rate reach twice as high as other groups', Mr Tsang said a number of training and employment plans have been introduced to help young people find jobs.

The Government will continue to support the education services industry to groom manpower resources as the city develops into a knowledge-based economy. Mr Tsang hoped an extra 4,000 university places will be provided, while the development of creative industries can offer more opportunities for youths.

Constitutional development

Turning to constitutional development, the chief executive said he had honoured his election pledge in soliciting the 2007 decision of the Central Government and the National People's Congress Standing Committee regarding the timetable for implementing universal suffrage in Hong Kong.

The Constitutional & Mainland Affairs Bureau will launch a public consultation next month on the electoral arrangements for the two elections in 2012. Mr Tsang hoped the polls will be more democratic.