Singapore today announced restrictions on people buying second homes as part of new measures to cool the residential property market.

These included decreasing the amount of loans a person can take to buy a second property to 70% of the property value, down from 80% currently.

The government will also impose a stamp duty on homes that are bought and sold within three years, increasing the holding period from the current one year.

"The government's objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals. The property market is currently very buoyant," the Ministry of Finance, Ministry of National Development and Monetary Authority of Singapore said in a joint statement.

Prime Minister Lee Hsien Loong said on Sunday the government will build 22,000 new public homes next year, up from 16,000 this year, in a bid to ensure housing remains affordable.

"We've acted twice to cool the market -- once last year and once in February this year -- but prices are still rising, Lee said. "We need to do more."

Private home prices in Singapore rose 11% between January and June, according to the Urban Redevelopment Authority.