Secretary for Development Bernadette Linn said on Friday the government is "cautiously optimistic" of being able to deliver on its annual home supply targets, as officials release a small residential plot for sale in the second quarter of this fiscal year.

The newly released residential plot, located on Wing Shun Street and Texaco Road in Tsuen Wan, has a floor area of around 39,000 square metres and is expected to provide 780 units.

"Taking into account this Tsuen Wan site together with six other [projects] involving lease modifications, we should be able to turn out land capable of supplying close to 5,000 flats, to be more exact, 4,950 units in this quarter," Linn told reporters.

Linn dismissed concerns that the tender for the Tsuen Wan site could fail. She explained that it is connected by a mature transport network and is close to community facilities, including a 940 square-metre area for social welfare uses.

The minister also said the government is on track to reach its annual target for the number of homes built.

"If we also take into account the supply from the first quarter together, it will reach about 6,000 units, or about 45 percent of our annual target for this [fiscal] year," she said.

"I think it suggests that we are moving in a stable manner towards our annual target."

When asked about her expectations for annual land sale revenue, Linn said it is difficult to give an estimate for now as it would also be dependent on other factors such as land premium payments.

But she noted that the government would steadily continue to roll out sites for sale, noting that the property market has recently logged a slight rebound in terms of transaction volumes.

Officials will also aim to put up for tender at least one plot in the Northern Metropolis by the end of this year, likely coming from the Hung Shui Kiu or Fanling North development areas, she added.