PROPERTY prices in Singapore still have "some ways to go" before they reach an acceptable level, according to Finance Minister Tharman Shanmugaratnam.

"We're still in a wrong part of the cycle," he told Bloomberg Television in an interview on Thursday.

Mr Tharman said the process of property prices becoming appropriate would "happen through a combination of income improvement, as well as prices certainly not going up further".

"Some correction in prices will not be out of order," he added.

In the hour-long interview, Mr Tharman also indicated that there is no need for Singapore to relax its monetary policy at this juncture, given the tight labour market.

The Monetary Authority of Singapore is expected to maintain its current stance of an appreciating currency when it reviews its monetary policy again in April, economists have said.