The escalating prices of the Certificate of Entitlement (COE) in Singapore have dashed the ownership dreams of many middle-class citizens. With costs surpassing $100,000 for a small car, aspiring owners are finding car ownership increasingly impossible. This, coupled with the challenges of climbing the property ladder, has left the new generation of Singaporeans questioning their priorities and rethinking their aspirations.
Singapore’s Transport Minister, S Iswaran, has clarified that rising Certificate of Entitlement (COE) prices are not driven by foreign demand, as less than 3% of car COEs are secured by foreigners. The long-term trajectory of COE prices is expected to trend upwards due to increasing household incomes and a policy of zero growth in the car population.
The Land Transport Authority (LTA) has announced a one-time adjustment to reduce supply volatility of Certificate of Entitlement (COE) quotas for Categories A and B vehicles. Category A will see a 24% increase, while Category B will see a 15% increase for the remaining five bidding exercises this quarter. This move aims to lessen supply volatility, though it will not eliminate it. The long-term upward trend of COE prices due to rising incomes and zero vehicle population growth will persist.
In this opinion piece by Robin Low, he argues that motorcycle dealerships in Singapore have been exploiting the Certificate of Entitlement (COE) system, causing hardship for lower-income families and delivery businesses. He points out the flaws in the COE and Temporary COE (tCOE) systems and calls for a reevaluation of the approach, particularly regarding electric motorcycles, in order to create a more equitable and sustainable future.
Certificate of Entitlement (COE) premiums for most vehicle categories experienced a decline in the latest bidding exercise on 4 May, under the new quota for the May-July quarter. Notably, motorcycle premiums saw a significant drop, while new measures were introduced, such as a higher bid deposit and a shorter validity period for temporary COEs