We are in the super cycle of real estate boom, because

1) US interest rates will stay low until 2013, and possibly longer. MAS monetary regime means that SGD interest rates will stay low too, and infact, today, the SOR is negative. In short, liquidity will stay abundant

2) Rental yields are still at least 3% at current level and above the funding cost (around 1%). It is one of very few property market in the world that has +ve carry

3) The supply is still relative small to the pent demand built up over the past 5 years. All Singaporeans who bought a HDB prior to 2007 property boom is now sitting on a very large equity on their home, easily 200-300k. They are sitting at the side to pound the market.

4) Singaporean couples who missed out the property boat for past 5 years due to lack of new flats are enormous. Around 20k of couples get married yearly and current BTO flats are building at the speed of 20k per year, so the backlog of flats still will remain until at least 2015.

5) Given current market turnmoil, even US may technically default, the europe PIGGS may soon facing fiscal trouble, the only AAA asset is SGD, and the best way to park the money for foreigner is Singapore property (no capital gain, total freedom of exiting the money, no restrictions)

6) In past 5 years, around 120k of PR are granted every year. Even the numbers are cut by half i.e. around 60k, around 20k of rentals/purchase still needed assuming 1unit:3occupants ratio