Will looming supply glut cloud positive outlook for property sector?

A supply of 10,262 units is bound in 2H16.

Following the weaker property sales in August, developers would still be on the rocks as supply glut hovering around the corner is expected to affect private home prices.

According to CIMB Research, the high incoming supply of 10,262 units in 2H16 and 14,578 units in 2017 would drag prices.

"We expect private home prices to continue declining and keep our projection for a mid-single digit dip in 2016," the report claimed.

The research firm also noted that 45% of these completions are in the suburban locations.

"This will continue to drag on price outlook in these areas," it stressed.

More so, this will be worsened by the rising vacancy and dwindling rental market.

To recall sales in August on a yearly basis were down 17.8% to 805 from 979 units last year.