I think the prices on the secondary market have risen because the prices on the primary market (which are all controlled by the developer) have risen. The last I checked, the launch prices from the developer for a typical cluster is 500+K, super link for 700+K, and semi-D for at least 1.4m. The developer claims that building cost and market prices have increased, but in reality their strategy is to keep increasing with each launch, so that they can make a tidy profit, and everyone who bought the previous launch will be happy, and will buy more units or tell their friends that they made a good investment and that they should also buy. So what we see now are owners of The Gateway increasing prices to just below the new launch prices at The Hills and The Golf. But before we get too excited about this uptrend in prices, we need to know whether these secondary market prices are actually transacted (not just advertised). Perhaps buyers would rather buy the new launches, as they can get defects liability warranty direct from the developer, they get to pick the unit, and they get some freebies thrown in like legal fees, club membership etc. I believe that these prices are sustainable because of increased demand as more foreigners discover (and like) Nusajaya. For example, one of the main reasons why Singapore and Hong Kong property prices went up after the GFC was because there were more capital inflows (especially from the PRC). Well, what the PRC and European investors did (and are doing) to Singapore, the Singaporeans are doing (and will do) to Nusajaya. It's only a matter of time as everyone scrambles to acquire freehold property, which is increasingly harder to do at reasonable price/income ratios.
The only thing which I think can cause Nusajaya prices to fall is:
(a) a global/asian recession, which is not likely at least until 2013, where
Singapore's property market heads towards the perfect storm; or
(b) a sharp downward spike in Singapore property prices caused by Singapore government policy, especially now that Minister Khaw has taken over (
see his blog).
By the way, here's a thread from another forum on Nusajaya which is worth reading:
http://www.skyscrapercity.com/showthread.php?t=354490