ST Forum : Why it isn't fair

Sep 6, 2010

PROPERTY AS INVESTMENT

Why it isn't fair

IN SATURDAY'S letter ('Property: Nothing wrong in having it both ways'), the writer asks: 'Why shouldn't Singaporeans be allowed to use property investment as a vehicle for growing wealth for future needs while living a modest life as an HDB dweller?'

While it is wise to invest for our future needs, the use of property as a vehicle for investment is not fair in land-scarce Singapore.

Humans have three basic needs: food, water and shelter. If many Singaporeans bought a second property here as investment, it would drive up the property prices, making it more expensive for those who don't own property to meet their minimum needs for shelter.

If many Singaporeans bought extra property to fund their 'future' needs, it would put the less well-to-do at risk of being unable to meet their 'current' needs. The Government is doing the right thing by taking measures to cool the red-hot property market and curb speculation.

It is a little self-centred on the part of some to insist on giving them free rein to speculate in properties. They should invest their money elsewhere, in instruments where others' basic needs are not compromised - like stocks and bonds.

Chan Yeow Chuan