The local economy began to become more favorable, Singapore real estate market finally showed signs of life again. Activities in the market has increased significantly, and economists are busy painting rosy picture on real estate transactions in the coming months. But beneath all the noise and optimism, Singapore government announced in November 2009 and calibrated that it intends to take measures to prevent the emergence of the real estate market.

And this time round, the government is more determined to prevent such a sharp uptake and potentially followed by equally quick reversal of the market.Perhaps the memory of the sudden boom and bust in the mid nineties is still fresh in the administration’s mind.

The Singapore government has quite a few options at their disposal and they are land supply strategy, credit tightening and taxation policies. We will go over each of these in more details.

Land Offer decision - This might be the most effective tool in the fight against the red hot demand for all types of real estate in Singapore. As the government to reduce the release of land for new developments, it will certainly slow down the offer for new projects launched in the market, so that unreasonable restrictions on real estate speculation.

Financing - Recently, speculation has been that the government guidelines for financial instruments, such as private loans for housing inspection may. Currently the maximum loan the lender may, to a qualified private house buyers agree, is 90 percent. Market participants and speculators to be seriously affected if this amount is brought back to 80 percent of the purchase price.

Taxation Policies - And when it is re-introduced to the market, it would certainly affect the market in a major way.As the government evaluates the options for its intervention in the real estate market, this one would likely feature somewhere in the plan.This capital gain tax has always been a convenient tool to in the past to combat excessive housing appreciation in Singapore.

Raise Property Tax - It could also be a focused approach targeting property investors and speculators. These folks may be subjected to a higher tax than the current 10 percent. In general those owner-occupiers in Singapore currently pay half of this amount.

Double Stamp Duty - Again this could be effective to slow down the market speculators as a stamp duty would be imposed whenever he chooses to buy or sell a piece of property.

However it is still early days to tell if the government would exercise its option as the market is still directionless at the moment. So there you have it, a quick list of possible measures to fight the potentially overheated property market.

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