Cheung Kong (Holdings) and Henderson Land Development are taking the lead in raising prices on residential property projects in the wake of the Government's decision to drastically cut land supply next financial year. Analysts expect the increase to test buyer support as the Government moves to prop up property prices with a conservative land-sales programme. Henderson yesterday added between 3 per cent and 5 per cent to prices for the less than 200 remaining units at its three projects in Tseung Kwan O - Metro City phase two, Metropolis and Le Cite Noble. General manager for sales Donald Cheung Ping-keung said prices were being adjusted in response to falling interest rates, a decrease in land sales and the limited availability of completed flats in Tseung Kwan O. Centaline Property Agency senior manager Eric Yeung estimated that, after the adjustment, the average price for the three projects would be HK$3,400 per square foot. He said buyers would not resist the adjustment because the increase had been expected and prices for other projects were recently adjusted. However, Ricacorp Properties manager Eric Chau expected buyers to be more hesitant after the adjustment. He said the three projects received a cool response yesterday. Cheung Kong said it would add 2 per cent to prices for its Laguna Grande, the fourth phase at Laguna Verde in Hunghom, from Tuesday. Prices will average HK$4,237 per square feet after the adjustment. Cheung Kong is selling 12 units of the project at an average price of HK$4,154 per square feet. Analysts said the reduced land sales and interest-rate downtrend came to the rescue of the residential market. Several weeks ago, developers were still engaged in price-cutting or offering competitive sweeteners such as cash rebates and mortgage subsidies to promote sales. Riding improved sentiment from the conservative land-sales programme, developers are set to release several key projects, after a period of inactivity. Cheung Kong said its University Court in Kowloon Tong would be released soon. Sun Hung Kai Properties and New World Development are planning to launch The Parcville mass residential joint venture in Yuen Long this month. Eric Chow Kwok-yin, general manager of Sun Hung Kai Real Estate Agency, said it aimed to achieve about HK$3,000 per square feet for the 1,618-unit project. The Parcville may clash with nearby rival Greenery Park, built by Hing Kong Holdings. It plans internal sale of the 330-unit project next week. Emperor International Holdings director Tony Tse Wai-chuen said it had released upper-floor units at JC Place, in Tuen Mun, for HK$2,450 per square feet.