The government expects private housing land supply in the three quarters to December will be enough to build 88 per cent of its financial year target for new flats, the development chief said yesterday. Analysts said the government could meet the private housing land supply target of 19,000 flats in the financial year ending in March, exerting additional pressure on home prices, which are expected to fall as a result of an impending interest rate rise and deteriorating economic outlook. Four government residential sites - three in Tai Po and one in Tuen Mun - will be released in the next three months, enabling the construction of 2,850 flats. That is about 72 per cent more than the 1,650 flats that could be built on land released for tender in the second quarter (July to September) of this financial year. The MTR Corp release of the tender for phase nine of Lohas Park Station, which will provide 1,700 units, and 285 flats in two projects in Sham Shui Po and Ma Tau Kok to be offered by the Urban Renewal Authority, will raise the total supply to 4,850 flats for the three months to December, against 5,100 units in the previous quarter. Among the four residential sites to be sold in the third quarter of the financial year, the three in Tai Po are being challenged by judicial review. "We remain cautiously optimistic about meeting the annual target this financial year," Secretary for Development Paul Chan Mo-po said yesterday. Together with the land sold for the construction of 4,850 flats in the quarter to December, sites being sold in the first three quarters of the financial year had the capacity to provide a total of 16,700 private flats, or 88 per cent of the 19,000 private housing supply target, he said. Yesterday's release of the third-quarter land sale programme follows Chief Executive Leung Chun-ying's insistence that he has no plans to cancel measures introduced to cool the housing market despite warnings of a fall in property prices. The approach contrasts with central government moves aimed at revitalising the mainland's housing market. The People's Bank of China yesterday announced a cut in the down payment for first-home buyers to 25 per cent from 30 per cent to stimulate demand. Derek Chan, head of research at Hong Kong property agent Ricacorp Properties, said he believed the Hong Kong government would achieve its housing target this financial year. "It may put more pressure on weakening market sentiment," he said. The home price up-cycle is now in its 12th year but an increasing number of analysts expect prices to fall by as much as 30 per cent from now to the end of 2017. Meanwhile, the tender for the eighth phase of Lohas Park in Tseung Kwan O received six bids - from Sun Hung Kai Properties, Cheung Kong Property, Henderson Land Development, Wheelock Properties, Sino Land and New World Development - the MTR Corp said yesterday.