The freeze on land sales until next April was welcomed by developers and analysts, who believe the measures will stabilise property prices. In a move which it is estimated will cut government revenue by $30 billion, 55 sites will be withdrawn under the suspension of land sales by auction or public tender. Another six will be affected by the freezing of land grants for sandwich class housing development. Today's public auction of two residential sites was cancelled. However, the Government will continue with other private treaty grants, lease modifications and land exchanges. The Real Estate Developers Association said the measures would 'not only help stabilise the property and stock markets but also boost people's confidence in the economy'. Sun Hung Kai Properties vice-chairman Raymond Kwok Ping-luen said the land sale measures and the expansion of home loan schemes would have a strong stabilising effect on the market. Henderson Land Development chairman Lee Shau-kee said suspending land sales would be an effective way to restore confidence. Among the 55 plots affected are 34 residential sites involving the production of 30,000 housing units. Others include six Private Sector Participation Scheme sites and three hotel sites. Indosuez WI Carr Securities associate director Douglas Sung said market sentiment should improve in the short term but he expressed fears over a potential shortfall in housing supply in a few years' time. Brooke Hillier Parker senior partner Nicholas Brooke said the Government had sent a strong signal that 'enough is enough' in terms of the property market's correction. He expected prices to firm up at present levels. Centaline Property Agency managing director Shih Wing-ching said the Government should study other measures such as delaying stamp duty payments to boost transactions but said the new package was positive and the price war among developers would probably end soon.