Chart of the Day: No sleep for developers as property supply set to skyrocket in 2016

Further aggravated by weaker demand.

Supply is piling up in Singapore’s property market as a significant amount of projects are set for completion in 2016, but only few are actually looking to buy.

And don’t expect things to be better soon, as BMI Research reports slower demand conditions in the coming years.

“Poor external demand conditions owing to both a slowdown in China and other key emerging markets are unlikely to abate in the near future, particularly given that we expect China's economy to cool further in 2016,” BMI Research said.

“Other factors which will weigh on property demand include rising interest rates as well as tightening immigration policies. Immigration (particular that of skilled immigrants) has been one of the key drivers of rental demand for new housing units over recent years. A combination of these issues will prevent developers from taking on more housing projects, while weak industrial production and exports will weigh on non-residential buildings,” BMI Research said.