COE Crosses $100,000 For the First Time in Over 20 Years
For the first time since 1994, Certificate of Entitlement (COE) prices have crossed the S$100,000 mark since 1994. Back in 1994, COE prices in Category Four cost S$110,500. This can be seen due to the constant and growing demand for cars despite the climbing prices, as well as other factors that can be attributed to the pandemic.
Industry specialists believe that these rising prices will continue to remain for the remainder of 2022, with uncertainty as to when they may dip again.
Why COE Prices Are Rising
Due to the COVID-19 pandemic, there was a severe in reduction of high-income expatriates moving to Singapore, but now that we are moving out of the pandemic, things are changing. With renewed interest from expatriates now moving and living in Singapore again, the demand for larger luxury cars is what has now created this steep rise.
Furthermore, the constantly tightening supply for COEs also consistently causes the premiums to climb higher throughout the year.
Another contributing factor is the Land Transport Authority’s (LTA’s) desire to shift to electric vehicles (EVs), with a pledge to cut 80% of carbon emissions in the next decade. In a recent article, we talk about affordability of owning an EV, and why they are considerably more pricey.
Category B cards include larger cars that carry more power, while the open category covers any type of vehicle except for motorcycles.
At time of publication, the results for the June 2022 2nd Open Bidding Exercise quota premium for Category B is at S$106,001.
While the rising prices are not attractive to most, it is still a sign of a thriving economy, which is all the more important now that talks are growing of a looming session. For now, all we can do is hope that things ease soon within 1 to 2 years.