THE Government is mulling over how much land to release for sale - a move industry experts see as a signal it is ready to act if the highly buoyant property market overheats.

National Development Minister Mah Bow Tan said on Wednesday there was 'every likelihood' the Government would reintroduce the confirmed list of land sites, which was suspended last October.

This is a list of sites tendered out on a fixed schedule, without preconditions such as developer expressions of interest.

'It's a question of how much we put on the confirmed list,' Mr Mah said. He also said HDB resale prices will continue to rise this year by perhaps 1 per cent or 2 per cent in tandem with the recovery in Singapore's economy.

New home sales in Singapore have shot through the roof recently. Resale prices of many popular projects have also risen from the lows early this year.

'As far as (private home) prices are concerned, we want to make sure the property market does not become overheated, that there is no excessive speculation,' said Mr Mah.

'The Government is monitoring the market very closely. If there's any necessity, obviously we will take certain actions. One of the things we are looking at is the government land sales.'

The Government suspended the confirmed list last October when the property market was in the doldrums and Singapore slipped into recession.

'Now that the market is coming back, demand is coming back and the take-up is strong, there's every likelihood that we will resume the confirmed list,' the minister said.

Mr Mah was speaking to reporters at the launch of the final skybridge at Singapore's tallest public housing project, The Pinnacle@Duxton. It has 1,848 units, of which 111 are unsold.

Mr Mah's comments signal the Government is ready to step in if prices rise too sharply and more people are swept up in a panic-buying spree, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. The move, however, will not have an immediate impact on prices, he said.

Said Savills Residential director Phylicia Ang: 'It's healthy for them to bring it back because some developers are running out of land.'

joyceteo@sph.com.sg