There could be a couple of factors. Personally I think there is a lot liquid money floating around in terms of savings, cheap mortgages etc. In addition people have lost a bit of faith in traditional investment products (shares, bonds etc.). These two combined push the people to invest in "safe" property and the best way to diversify a portfolio is to buy several small condos.

This is "dangerous" because the investors don't buy what the market demands what rather what they can afford. There are already ghost malls in Singapore. Two on Balestier Road alone...