Don’t neglect impact of property prices on business investments

I refer to the letter “Curb supply to avert dangers of a burst property bubble” (Sept 23).

I disagree that the authorities must curb property supply. Prices have risen 60 per cent over the past four years and have adjusted by only 3.3 per cent over the past three quarters. Property here is still overpriced.

Those who bought property earlier may have expected prices to go higher, but that would be dangerous. Singapore relies on foreign investments, and property prices affect business costs.

Already, the Republic is an expensive city. If investors start to leave, people would start to lose jobs, our spending power would weaken and property prices would be hit, too.

Looking at short-term benefits can bring long-term pain.

One should not think that property investment in Singapore is a guarantee of profit, and then blame the Government when it is otherwise. The actions to correct prices were a bit late, so the adjustment should continue for a few years until prices are reasonable.