I feel that the global economy is still weak, it is like a string, where governments are holding on to it to prevent it from breaking, that sounds scary to me.

1) I am hoping that housing prices will fall sharply but I don't think it will happen in 2010.
2) The 2 upcoming IRs would help to sustain the rental market in some way.
3) Our population now stands at 5 million, the influx will help to soak up some rental and sales units.
4) Anyway need to check up on the number of unsold new units coming onstream for 2010 & 2011, esp. from those enbloc sales projects.
5) The world economy is probably still in a precarious state now?

It's odd that residential real estate prices have been booming the past year. We have been through the March worst, and the stock market is pricing in recovery (no less to adjustment in fair value accounting and gigantic gov stimulus). However, absolute unemployment is still on the rise though the rate might have decelerated. In Singapore, the Job Credit Scheme and SPUR have somewhat lessened the impact on unemployment as well. So yes, the economy is still in a fragile state.

Perhaps, much of the monies have been foreigner capital inflows to snap up good real estate in land scarce Singapore for investment. Maybe some of the money has flown southbound from our wealthy Chinese friends. Not too sure on how the price might move, but if one follows traditional concept of market cycle where stock market leads economy and property, perhaps a bubble is in swing.

In any case, there's no sense in paying through our nose for a property with a hefty pricetag (consider both the deposit and mortgage repayments). Mortgage debt can cut both ways. That's the power of leverage.

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