Singapore government, concerned over speculations in the property market, has announced various measures to avoid any housing bubble in the real estate segment. The Ministry of National Development has announced its decision to allot more land for developers, besides tightening norms governing home loans in the country.

The ministry added: "Demand for uncompleted private housing units has picked up strongly since February 2009." It stated that record sales of 10,017 units was done by developers during the first seven months of current financial year, surpassing sales of 4,260 units for the entire last fiscal.

The Monetary Authority of Singapore also banned banks from extending interest only loans for uncompleted residential buildings adding, "These schemes could encourage property speculation in a buoyant market where prices are rising rapidly."

The city-state is expected to suffer four to six percent fall in its economic growth rate in 2009 as per government. But the country has technically come out of financial trouble, with key economic sectors reporting adequate growth due to improvement in demand.

Li Hiaw Ho, Executive Director of property advisers CB Richard Ellis in Singapore hoped that recent announcements will discourage speculations in the property market. He further added: "Despite these measures, residential home prices and sales volume will continue to improve; only now the pace of increase would be moderated to more sustainable levels with less volatility."