COE
SINGAPORE: Certificate of Entitlement (COE) premiums for November's 1st bidding has just been released, and it has significantly dropped by $40,000 (US$29,500) from the latest tender exercise on Wednesday (8 Nov).
Premiums for Cat A fell by $10,311 from $106,000 to $95,689.
Cat B has dropped by 26.7% from $150,001 to $110,001.
Land Transport Authority (LTA) has increased the COE quota for the bidding period of November 2023 to January 2024.
LTA has reallocated an extra 1,614 Category A, B, and C COEs, on top of the 1,895 COEs that were announced last month (Oct 2023).
The number of COEs available for bidding is very much dependent on the number of deregistered vehicles, given the limitation of Singapore's zero-growth car population policy.
Quoting Minister for Transport Chee Hong Tat, "More COEs will be brought forward from peak years to fill in the current supply troughs while maintaining the zero-vehicle growth policy."
Using a 'cut and-fill' approach, the government will attempt to bring forward the quota to reduce "guaranteed deregistrations" by increasing the COE supply during the current troughs.
Whether this approach would sustain in the long run, time can only tell.
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