The affordability for domestic market condominiums in Singapore had improved as compared to 2007. It is mainly due to the low interest rate. Domestic condominium project outside the central region are leading the market recovery. Demand for condominium outside the central region had increased to 40 percents of total private residential transaction in Singapore.  The developers took the opportunity to launch domestic condominium at competitive pricing in first quarter of 2009. More than half of the purchasers were HDB upgrader.

The number of private condominium that is to be completed between 2009 to 2013 is estimated to be in the range of 11,000.  In comparison to 1996 - 2000, there are about 40,000 completed which include both private and public housing, the number of unit completed for the past five years had dropped to 13000 units per year as the government cut down on the number of public housing.

The residence population grew with an estimated yearly rate of 1.4 per cent from the past 10 years.  Based on statistic, the annual demand will be about 16000. There is also high demand for government public housing for three and four room model. The application for Punggol and Sengkang this year created an oversubscription situation. With the high demand in public housing, it cause a overspill effect for private condominium. Majority was upgrader of public housing.

With such increased in demand, the pricing also start to increase gradually from the beginning of 2009. For example, an average price of a three bedroom price, it had increased to a medium price of $600psf which is similar to the peak in 2007. Also, the lower interest rates had also improved the attractiveness of the domestic comdominium.

However, the recent launches in second quarter of the year had greatly indicate the increase in the pricing. The current domestic market new completed project is at an average pricing of $950psf. Project that just completed and near to the train station attracted many serious buyers that willing to pay for a premium. For example, the resale price of Casa Merah upon completion saw the pricing to increase to $850psf.

However with the average price going toward $900 psf, not many resident may afford the monthly installment. With this, the downward pressure start to form. The caveats lodged in August showed a lower share of public housing upgrader.

With Singapore growth and business infrastructure, the country is attracting many oversea investors. These investors believe that there are further upsides in the long run.  The economy in Singapore had performed better than expected in 2009 mainly due to the stimulus spending by the government.

Recently the government had implemented cooling measures to curb speculation, which may lead to the stabling of the price of condominium. However, such may measures does not affect condominium with good location such as Casa Merah.