Updated: 03/02/2013 01:32

DPM Tharman says there's still some way to go before property prices are at an acceptable level

Deputy Prime Minister and Finance Minister Tharman Shanumgaratnam says there's still some way to go before property prices are at an acceptable level.

In an interview with Bloomberg Television, he said "we're still in a wrong part of the cycle."

Mr Tharman said some correction in prices will not be out of order.

The Finance Minister said while the government will never be able to tame the "sentiment-driven" market, it has to limit gains because of the social impact when people can't afford to buy homes.

He said he's confident that the government will get a handle on the situation.

The government has imposed steps to cool the housing market since 2009, with the last round in January including an increase of as much as 7 percentage points in stamp duties.