If you judge the health of the real-estate markets by the number of inches of headline coverage that it generates in media coverage, then Singapore’s property industry looks to be booming. The recent news of a Singapore record-purchase of land for condominium development, the coverage surrounding the snapping up of units close to an MRT station that won’t open for another seven years, and the announcement that Chinese purchasers were now the largest group in exclusive property enclave Sentosa Cove, all contribute to an impression that Singapore real estate is on the up and up.

High Prices, Prime Locations
Certainly, there is a continuing boom in higher-priced homes in the second quarter of 2010 and properties valued at S$3 million and higher made up close to 10% of all transactions that took place in that quarter. This luxury property market continues to be concentrated in the central, prime districts of 9, 10 and 11 (roughly covering the areas in around Orchard and Cairnhill; Bukit Timah, Tanglin and Holland; and Newton and Novena, respectively), although there was increased activity in the CBD and the areas of Habour Front and Sentosa.

Million-Dollar Homes
However, away from the headline-grabbing sales, a picture emerges of an increasingly expensive property market, with property consultants DTZ reporting that the majority of buyers now pay more than $1 million for their homes. Even HDB homes, the mainstays of Singapore real estate, are increasingly topping the one million mark, with 43% of HDB homes bought in the second quarter costing at least this amount.

Concerns and Expectations
This increase in prices, a rise of the Urban Redevelopment Authority clocked at ‘almost 20% since the third quarter of 2009’, has resulted in a distinct slowdown of the Singapore real estate. While analysts lists various factors, ranging from concerns over European countries’ debts, an unstable local stock market and the increased availability of land, the findings suggest that affordable private housing could become increasingly unobtainable for many Singapore residents, who may well have readjust their expectations accordingly.