Shares of Singapore developers holding up despite government’s move to substantially increase residential land supply in 2H10, according to Dow Jones.

Performance suggests investors already anticipating measures following 25% on-month jump in April new home sales to 2,207 units, highest since July 2009. FTSE ST Real Estate Holding & Development Index +2.1%.

“The fact that the government did not come up with more severe demand-side measures signals the view that there is no bubble, and hence no need for draconian demand-side measures yet,” says Credit Suisse.

DMG says underlying demand from genuine owner-occupiers likely to remain well-supported by recovering economy, soft interest rates, resilient public housing prices, which narrow price gap between private mass-market homes and HDB flats.

Total of 31 residential sites will be available for sale in 2H10 (18 in confirmed list, 13 in reserve list), likely to prevent developers from bidding aggressively as they seek to replenish depleting land banks.

Gainers include CapitaLand (C31.SG), +2% at $3.58, CityDev (C09.SG), +2.2% at $10.34, Keppel Land (K17.SG), +1.7% at $3.52.