Pressure on the Government to relax the 70 per cent mortgage ceiling on residential properties increased yesterday after another large property developer yesterday voiced support for the proposal. New World Development chairman Cheng Yu-tung said removing the cap would benefit developers and home-buyers. Home-buyers would pay smaller deposits if banks agreed to increase the loan-to-value ratio on housing properties. His statement came days after Cheung Kong (Holdings) deputy chairman Victor Li Tzar-kuoi and Henderson Land Development chairman Lee Shau-kee supported lifting the 70 per cent mortgage cap. Mr Cheng was speaking after the opening ceremony of a management institute that bears his name yesterday. The institute - the first campus of the Richard Ivey School of Business outside Canada - was officiated by Chief Executive Tung Chee-hwa. Mr Cheng said the residential market remained unstable and a correction was not expected. Many developers have sold properties at below development costs and he believed they could not cut prices further, he said. Henderson Land Development director Martin Lee Ka-shing, also at the ceremony, reiterated the company would not cut prices at properties such as Metro City phase two in Tseung Kwan O as the sale had been well received. In the face of the declining property sector, rising unemployment rates and a deteriorating economy, developers are facing pressure to sell properties. They are also facing defaults on projects sold during last year's boom. New World managing director Henry Cheng said the company would see some defaults on the sale of the converted office floors of jointly owned Victoria Apartments in Sheung Wan. He said the company had offered a price cut to other buyers in an effort to persuade them to complete their deals. 'It's not unexpected,' he said, declining to disclose the details. Mr Cheng said the company had decided to call off the redevelopment of a site at Wah Yan College in Kowloon after it was rejected by the Government.