MORE stable property prices, in line with an inflation rate of 10 per cent have been forecast for 1995 by the chairman of Henderson Land Development, Lee Shau-kee. Mr Lee also is chairman of Hong Kong and China Gas which surprised the market when it joined Henderson Land to bid for the prime King's Park site in the land auction on March 30. He said further plans for China Gas to develop property interests would depend on its liquidity. Speaking after the annual general meeting of China Gas yesterday, Mr Lee said its gas supply investment in Fangcun, Guangzhou, would bring a satisfactory return of more than 10 per cent to the company. Managing director Malcolm Matthews nevertheless said the project would not bring profit to the company until 2000. China Gas announced on Tuesday that it would spend $180 million to construct two substitute natural gas plants and a distribution network in Fangcun. China Gas would hold a 60 per cent stake and Guangzhou Gas would hold the rest. Mr Matthews said 60 per cent of the investment would be financed by loans. While stressing the company was interested in investing in China, Mr Matthews denied the Hong Kong gas market had become saturated. 'We have a market share of only 51 per cent and there is plenty of growing room in Hong Kong,' he said. 'But we will have prudent business development across the border, certainly.' He declined to reveal whether the company would conclude any new investment projects in China this year. First vice-president of Merrill Lynch, Alice Hui, said in her latest report that the joint venture in Fangcun would not affect the share price of China Gas because the investment was even smaller than the company's other two joint ventures in Panyu and Zhongshan. The long waiting period for return was another factor, she said.