Speculators knew risks involved

PUBLISHED : Saturday, 24 June, 2000, 12:00am
UPDATED : Saturday, 24 June, 2000, 12:00am

Those who have called for government intervention in the property market are wrong.

The property and stock markets are similar. Both offer returns from investments and both involve risk. So anyone making such investments should weigh up the risks, before deciding whether or not to get involved in speculation.

Those individuals who took risks on the property market, now want the Government to bail them out. Why should it? In the boom years, did these speculators ever share their profits with other people? If supply is high and demand is low property prices will drop and vice versa. Let these market forces decide prices.

Another reason for the drop in property prices is the poor quality of some of the apartments. The property market is now in a period of transition. Developers have to improve building standards.