@sohguanh: I always though Singapore was quite affluent? Being one of the major economies in Asia... Or is there a rich poor divide or something?
To build houses, you need land. If your land is small and you have to find a solution to solve your housing needs for say 5 million people, the only way to build is upwards to the sky. That is where the so called government housing came in back in the 60-80's. With the past two decades of letting in millions of foreign talents, those government housing are no longer cheap as immigrant also seek to get a house and compete with locals leading to sky high housing prices in my country. The recently concluded election results has shown a major slip in votes for the ruling party and it will erode further in the next election.
Affluency come at a price and at the rate it is going for my country, it will crumble some day only a matter of when.