SINGAPORE (Dec 18): Singapore's residential sector will continue to suffer an excess of supply and weak sales next year, with vacancy levels rising to about 10% by the end of 2017 from around 7.8% currently, OCBC says in a note.

In addition, floating mortgage rates will likely rise now that the US Federal Reserve has raised interest rates, adding pressure to housing affordability, the research house says.

If there's a bright side, it adds, government cooling measures could reverse towards the end of 2016 if the price declines accelerate as expected.

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