Singapore - Singapore's central bank on Monday said that more measures might be needed to counter speculation in the city-state's property market, as there was a risk of an escalation.

"As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted," said the Monetary Authority of Singapore in its annual Financial Stability Review.

"Despite the lingering uncertainties in the domestic and global economy, domestic property market activity has taken on its own dynamic," the central bank added.

"Going forward, price levels and transaction activity bear close monitoring," it said.

"More measures might then be necessary," said the central bank, noting that "the nature and timing of further measures, if deemed necessary, would have to be balanced against the still uncertain path of economic recovery."

The warning echoed raising concerns around Asia that the boom in property markets in cities like Singapore, Hong Kong or Seoul could form a new bubble.

Last month, the Singapore government acted to cool down the property market, for example, by releasing more land. (dpa)