Developers should accept investment risk

I am concerned about the Real Estate Developers' Association of Singapore's (Redas) comments on tweaking the property tax policy to help developers sell their projects later ("Redas calls for review of property tax policies"; Feb 11).

This request is to help developers make a profit.

However, developers made an investment decision. When the investment fails to bring profit, is it reasonable to ask for government help?

If property prices remain soft, would Redas then ask for government intervention to support property prices?

Developers should accept that they took an investment risk, and not all investments result in earnings.

In any free market, demand and supply determine the pricing for goods and services.

Redas members should review their property pricing strategy to move their units.

Kelvin Hoo Poh San

A version of this article appeared in the print edition of The Straits Times on February 15, 2017, with the headline 'Developers should accept investment risk'. Print Edition | Subscribe