Here we go again, and I know that some people who have no idea of your current life are going to shoot me down, but I am going to take the time to give you an honest reply as I should have done what you are doing and didn't and would have loved an honest answer.
I from Syd, am the same age, have two kids around the same age.
1. Condo, there are lots of choices. I reckon $5k per month MIN. $7.5 will give you something nice with good facilities - I would suggest Duchess Crest/Astrid Meadows or something more central. Hmm, agents, I reckon they are all dodgy. You'll just have to do the hard yards with looking at lots of condos - my agents tips are never tell your real budget, always ask for lots of things to get done (and make sure they pay for air con servicing), and always offer less than they ask and try and get lease in company's name.
2. Childcare like is in Syd hardly exists. You could go pre-school from 2 1/2 up but nothing for 8mth old. There are lots of activities for mums and kids such as Gymboree, Centre Stage, Prime Gym, Tumble Tots, Julia Gabriel etc and I would also reccommend these as a way to meet other people in same situation, same age kids. Most of my friends are from doing this. Most people have a maid, and even if you think you won't, you probably will (O I am going to get shot down for that one, I just know!)
3. See above. Also, most condos are social, join ANZA, it's all pretty easy here to make friends, easier than Sydney.
4. I think this is your big prob. I think you need a car with two kids - taxis are cheap and plentiful, but just wait until you want one when it rains (yes, in Singapore this does happen a bit) or in peak hour and then they are a bugger to get. Try and get some budget or be prepard to fork out for yourself or be annoyed about it. Umm, a car can cost as little as $650 a month plus $10,000 deposit you get back with PARF. Taxis do not have car seats.
We are on about the same deal you are being offered. I don't know what you earn now, but I think Singapore is about 1.5 times the cost of living in Sydney. Wine and eating in western places is awfully expesive. Elect bill is $500 per month, petrol is horrific, the food bill is lots more - even nappies seem to be double the price, your phone bill with triple overnight, you will want to fly home with the kids once or twice a year, and you deserve extra savings for being away from home. For me, if they threw in paying your utilities, car and flights home it would be worth it. However, it's a great place to live with young kids, and lounging around the pool is fun.
O, Pandan Valley is awful. Katy F, have you ever been to Sydney's Eastern suburbs? Out there, you also have given no consideration to this guy's current life. I am sure lots of Indian Workers live here on $1k a month and think life is sweet, but this guy and his wife wouldn't.
As I said, my two cents.
Good luck.