According to a report from CIMB Research, prices of Singapore private home are expected to be dragged down facing the upcoming large supply in the second half of 2016 about 10,262 units and 14,578 total units in the next year.
In addition, about 45% of the incoming supply is placed in the suburban areas, by which it could exert significant downward pressure on the prices of property.
The situation could be worsened by the declining pool of potential tenants and climbing vacancies, CIMB Research noted.
To recap the Urban Redevelopment Authority (URA) data, excluding executive condominiums (ECs), new private homes sales dropped 56% to 473 units last month compared to 1,091 units in July.
Experts attributed the slump of sales to the lack of major launches as the Hungry Ghost Festival observed last August, by which it's considered as an auspicious dates to purchase property.