While I do not disagree about the effects of panic selling in a property bubble, I disagree that the situation necessitates action from our authorities, as recommended in the letter “Curb supply to avert dangers of a burst property bubble” (Sept 23).

Firstly, over a 15-year period, property prices have more than doubled, with the hottest growth in the past five years — small wonder then that Singaporeans have relatively hefty mortgages now.

Even a modest 1,000sqf apartment exceeds S$1 million.

This is clearly untenable. While the authorities had instituted a series of cooling measures, it was the last one, the Total Debt Servicing Ratio of 60 per cent, that is proving to be the most effective.

Secondly, the surge in supply — 83,633 upcoming private homes (and 21,268 currently vacant units) — peaking next year and in 2016 was anticipated. Buyers, developers and banks went in with their eyes open.

On top of that, it was known that only about 8,000 private units were added annually in the past 10 years.

Thirdly, home ownership is a big, long-term investment for every family; decisions taken must be thought through. Singapore has public housing and there is no shame if one cannot afford or is not ready to buy private property.

Finally, those who leveraged to buy a home for occupancy will endure the ups and downs of the market, which are but paper gains or losses.

The real pain is for buyers of two or more properties with sizeable loans. In wanting quick riches, these borrowers could pay the price for any major downward correction through a potential default or top-up required by the bank for mortgage security.

Unfortunately, buyers who lacked financial prudence would similarly have to pay for rushing into the then red-hot market.

But the authorities have taken the correct steps.

There would have been a drastic collapse eventually if the market had been allowed to operate unchecked in the past few years. A correction is now timely, accentuated by the oversupply, declining rental opportunities and rising interest rates.

Unlike in the United States, most Singaporeans are generally conservative and prudent, which explains why our banks are paying less than 1.5 per cent for time deposits.

If the market corrects substantially, it gives new opportunities for these conservative Singaporeans to buy a private property at an affordable price, creating a new market and a consequential pick-up in demand.