Upward trend of COE prices seen due to rising earnings and ‘zero vehicle’
In April, COE prices for Category A cars went up by $7,503.
The supply of certificate of entitlement will start increasing in the coming months as more vehicles attain the 10-year mark. As this happens, the prices will also go up as incomes increase and zero vehicle population growth will not abate, said Minister for Transport S Iswaran.
In a speech at the Parliament, the transport minister said their ministry as well as the Land Transport Authority are studying if there is more that they can do to smoothen the COEs supply.
“Consequently, as a one-off exercise, LTA will bring forward and redistribute the supply from 5-year COEs which are due to expire in the next projected supply peak. As these 5-year COEs cannot be extended and therefore have to be de-registered, LTA will be able to identify the exact number with certainty,” said Iswaran.
This supply will be redistributed over several quarters starting from the next bidding exercise, Iswaran said.
It will also increase quota supply in the next bidding exercise by about 24% in Cat A and 15% in Cat B.
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