THE Government's move to cool the property market has stabilised Discovery Bay re-sale activity since the first quarter, but rents are still rising at the Lantau residential development. Vivian Sze, spokesman for the Discovery Bay Agency Ltd, said there was a ''cautious, wait-and-see attitude'' for some types of house and flat. Prices for garden homes and low-rise units remained strong, but the number of transactions had fallen substantially since the end of the first quarter, she said. DBA is the real estate arm of the luxury estate owned by Hong Kong Resort International. Ms Sze said re-sales in the first quarter were high. ''The first quarter was very active with new records in purchase prices being set time and again,'' she said. The average asking price for apartments in high-rise buildings no older than five years ''remains strong'' - about $4,200 per square foot. However, Discovery Bay phase five flats were, by comparison, a bargain, she said. Demand for these flats, which fetched an average of $3,600 a sq ft, was strong. Ms Sze said their prices were comparatively low because they did not command a sea view and were some distance from the ferry pier. Flats that had better views were going for $4,000 a sq ft. There was ''a strong interest being expressed by home owners and investors'' for these flats, Ms Sze said. By comparison, a garden home at Bijou Hamlet, adjacent to the golf course, sold recently for $7,200 a sq ft. Ms Sze said this was a clear sign there was still strong demand for top-quality houses. That figure included the price of the debenture for membership to the golf club. Meanwhile, rents at Discovery Bay have continued to rise, reaching $20 a sq ft. As demand outstrips supply for garden houses and low-rise units, their rents are expected to increase well past the current asking price of $23 and $30 a sq ft.