This comes a day after the government announced it was offering more residential sites for sale next year.
A plot of land will be put on sale next January, one of eight sites to be sold in the first half of 2010, and another 16 sites will be made available if there is demand.
In all, these could see a potential 10,000 private residences in the next few years.
Along with another 60,000 units in the pipeline, the government says there is no shortage of new homes.
Mr Mah said: "It's hard for me to predict what prices will be like, but what I do know is that there is ample supply so therefore there is really no reason for there to be a rush, a panic to buy. And that in itself will help to moderate prices."
Private home prices hit record highs recently, prompting government measures to cool the market.
However, the minister said there is currently no indication of a speculative bubble.
The worry now, he explained, is whether there is an under-supply in the market. Hence, the government will release enough land to meet medium-term demand, and let the market decide.
On public housing, one issue that has drawn attention was the housing board's latest annual report, which showed a deficit of S$2 billion.
The amount is twice that of the previous financial year.
Mr Mah said the HDB makes a loss each time it gives out subsidies to first-timer home buyers, and when it sells flats lower than their cost price. The reason for the high deficit was because more flats were offered for sale last year, compared to the year before.
"The question is of course, should HDB be making a loss? The answer is yes," said Mr Mah. "It is making a loss and the government gives it grants every year to cover the losses, mainly because we're giving subsidies to people to buy flats to make flats affordable to first timers. That is why we're making a loss."
- CNA/yb
By Hoe Yeen Nie & Jeremy Koh, Channel NewsAsia
Posted: 07 November 2009 2217 hrs
