A MILD consolidation in residential property prices is expected on the back of bank credit tightening and the growing prospect that land supply will be increased, says Henderson Land Development Co. The group said in its interim results yesterday a cooling in activity in the sector was already being felt. For the six months ending December 31, net profit was up 15 per cent to $2.34 billion, with earnings per share up a similar margin to $1.47 and dividend up 73.9 per cent to 40 cents. Turnover was up 14.79 per cent to $3.68 billion and operating profit rose 38.36 per cent to $2.52 billion. Earnings from associate companies slumped 55 per cent to $291.12 million. ''As development projects due to be completed in the second half of the current financial year will exceed those completed in the period under review, and the majority of development projects due for completion later this year have already been successfully pre-sold, in the absence of unforeseen circumstances, the group's profit for the current financial year will show a big increase,'' the company said. A rise in dividend is also expected. Last year the group reported 12 months to the end of June a net profit of $4 billion, earnings per share of $2.51 and a dividend of $1.10. The Estimate Directory suggests the market expectations of net profit for this year will be $5.26 billion, up 31 per cent, with earnings per share at $3.30, up the same margin, and a dividend of $1.35. The share closed down $1.50 at $39.75 yesterday. At subsidiary Henderson Investment, turnover dropped 31 per cent to $359.28 million, operating profit fell 17 per cent to $226.42 million and net profit edged up 2.77 per cent to $440 million. Earnings per share rose 2.1 per cent to 19.2 cents and an interim dividend of nine cents a share was declared. Henderson Development said during the period the land bank was replenished by 1.3 million square foot, taking the total to 18.5 million sq ft. While property prices were strongly up in the last few months, the group said there had been a cooling in activity recently. The bank credit tightening and the announcement by the Government to look into increasing land supply ''appear to have shown their initial effect, with property trading activities beginning to see a slowdown in the last couple of weeks''. The group added: ''While it is anticipated that a mild price consolidation will occur, this may be of benefit to the property market for the future.'' The group still felt the market was well-supported and viewed it with cautious optimism. Listed associate companies in the group have also announced profit rises, with Hong Kong and China Gas Co reporting 21 per cent and Hong Kong Ferry (Holdings) Co recording 13 per cent. At Miramar Hotel and Investment Co there was a 41 per cent rise in net profit. Pre-sales at projects in China are expected later this year. The group said it was aware of the new tax regime on the mainland. Details of the projects are to be announced later.