Rise in Singapore private home prices by more than 10% so far this year to levels above 1996 peak has raised affordability concerns, may trigger more government measures to cool property market, says CIMB, according to Dow Jones.

CIMB notes overall affordability now inching closer to banks' 35% mortgage-to-income threshold ratio: “We believe the government will be watching this set of data with much interest, which will increase risks of further policy noise if demand and prices continue to run unchecked.”

According to official advance estimates, private home prices +5.2% on-quarter in 2Q10 after +5.6% in 1Q10. House tips CityDev (C09.SG) as key underperformer among developers, rates office plays like Keppel Land (K17.SG) as better investments.

CityDev +0.9% at $11, Keppel Land +0.8% at $3.91.