Here's what the healthy April home sales could mean for the market

It can push government to increase land supply soon.

It was all cheers for the residential property sector after it posted the third highest primary sales since 2014, with almost 2,000 units solds despite the lack of new launches.

However, for DBS Group Research analysts, the question is whether this euphoria can linger until the second half of the year.

Derek and Rachel Tan from DBS said in a property report that positive sentiment shows signs of returning to the property market as shown in the record sales in the last two months.

"Property developers are bringing forward their new launches to catch the ‘euphoric’ wave, however, we note that 1Q17 property price index (PPI) was still on a downtrend, though it may not have incorporated the full impact from the relaxation of property measures, and new property launches are likely to taper off in 2H17," the two analysts said.

With this strong sales volume and the dwindling residential supply, the two said the government may increase land supply soon to prevent potential overheating.

"We continue to track sales volume and believe sustainable strong volumes are a prelude to a recovery in property prices," they said.