One of Hong Kong's biggest developers has released flats for sale at steep discounts despite the Government's latest market-boosting measures. Henderson Land Development cut prices in one project by 10 per cent and released flats in another at prices 11 per cent below the secondary market. The moves indicate that confidence in the property market remains fragile despite a double dose of positive news last week. The Government effectively raised the mortgage lending ceiling from 70 to 85 per cent through a mortgage-insurance scheme on Thursday. The announcement came the day before a 0.25 percentage point cut in interest rates, the third in quick succession and the fourth this year. Henderson is offering a batch of 68 remaining units at Metro City II in Tseung Kwan O at an average price of $3,438 per square foot, about 10 per cent below the $3,800 per square foot for the last batch. It is also releasing 28 units at tower two of Newton Harbour View in Shau Kei Wan at $3,978 per square foot, about 11 per cent below transacted prices in the secondary market. The project was launched at $7,200 per square foot early this year. There are 1,500 to 1,600 unsold units remaining in Metro City II and 224 in tower two of Newton Harbour View. Henderson Land general manager for sales Donald Cheung Ping-keung said prices of unsold units at its Dawning Views project in Fanling would be reviewed by next Tuesday. Dawning Views flats were on offer at $3,400 per square foot. Mr Cheung said Henderson Land had generated about $17 billion from the sale of 7,000 units since January. The company planned to release 10,000 units for pre-sale next year to raise revenue of $25 billion to $30 billion. He expected Henderson Land's rental income would grow by 20 per cent this financial year, boosted by additional income of about $640 million from its new office project in North Point and a shopping mall in Tseung Kwan O. DBS Securities Hong Kong property analyst Winnie Chiu said developers remained cautious in pricing as they had to accelerate sales to boost cash flow. 'Developers have to strengthen their cash position to prepare for the resumption of land sales next year,' she said. She said prices for Metro City II were under pressure due to massive supply in Tseung Kwan O, while prices for Newton Harbour View were reasonable due to its secondary location. Registration for buyers at Newton Harbour View will be from Tuesday to Thursday next week, with the sale on December 19. Registration for Metro City II will run from Wednesday to Friday and the flats will go on sale on December 20.