Over 85% of kenyans cant afford mortgages and cant dream of getting cash to buy hses at the current market prices..the market is almost turning to be dictated by the few buyers and a crush must come.

property prices will continue going up for the forseeable future whether we want them to or not..

As long demand > supply the status quo must remain..

No one can say that anytime soon supply will be > demand..

Loan rates now average 19%, pretty steep if you are developer. Lets see how things look in March 2012...

Remember that the world population hit 7B yesterday. We are now 41.6M Kenyans 50% of who are young. I know of only three basic human need food< SHELTER and clothing. Keep dreaming about your burst for the next 10 years.

I don't think anyone is suggesting a bust. But I think a decrease in the growth and slight correction in some areas is very likely.
Developers who sold houses off plan are having difficulty completing the properties on time. The prices of inputs have gone up and the few they are trying to sell once complete are being affected by high mortgage rates.
Something will have to break in some of these markets where there is oversupply of houses/ apartments and the prices will definitely come down. I suspect syokimau (area in the short term), Kilimani & kileleshwa, Thika I think are areas where prices of houses will probably come down.
I also envision the rental yields increasing in the short to mid term. The rent will not come down in any of the areas above. The supply of rental units is way below demand (both will & able and well defined) and since the prices will be coming down this makes it ripe for long term investment.
So the question begs .. is real estate a viable market? YES but strategies will have to change.