The rising housing prices and upturn in the economy makes 34-year-old communications manager Lisa Low worried.

She fears that when she finally finds her dream home, she may not have enough money for the cash-over-valuation (COV) that resale unit buyers must pay.

"Is there such a thing as affordable property in Singapore today? With skyrocketing COV, I wonder if I'm able to fork out the $10,000 to $20,000 upfront," said Ms. Low, who resides in Bedok.

According to Mark Teo, senior group division director of ERA Realty Network, potential home owners like Ms. Low are considering several factors prior to buying a property.

Affordability is still a key factor.

First-time buyers who qualify for the HDB criteria can make "the most economic sense" by passing their application for a flat directly from the HDB, since they may spend up to three times more for private properties than for public housing.

Home buyers can benefit from the housing-loan interest rates and subsidized prices that remain the same for an extended period, Mr. Teo said.

At present, there is an annual interest rate of 2.6 percent.

According to Nicholas Mak, a real- estate lecturer at Ngee Ann Polytechnic, the 99-year condos and second-hand executive condominiums are also attractive.

“Executive condos that are five to 10 years old are slightly cheaper and come with all the amenities of full-fledged condos, like carparks, swimming pools and tennis courts,” Mr. Mak noted.

“Ninety-nine-year condos are also cheaper but they may not be as conveniently located.”

Ultimately, selecting a property depends on the buyer’s personal savings from the time of purchase to their earnings in the future.

"As a rule of thumb, it is not prudent for anyone to use more than 40 per cent of their income to service their monthly home installment,” said Mr. Teo.

However, Mr. Mak said that primary residences do not usually make good investments, as they are only chosen for their proximity to certain amenities or schools.

Mr. Teo suggested that investors who can spare $1 million should consider condos in the Tiong Bahru area, which has 3 to 4 percent rental returns, a relatively high figure.