COE premiums hit record highs

[Ithunk]

Prices for certificates of entitlements (COE) have soared to record highs on the back of an announced reduced vehicle growth rate.

 

The premium for a small car (cars 1,600cc and below, including taxis) COE ended at a 15-year high of $56,112.

 

This was an increase of 16.9 per cent from the previous premium of $48,006 at the last bidding on Sept 21.

 

Premiums for big cars (above 1,600cc) saw the biggest jump. It closed at $75,889 up from $63,600, an increase of 19.3 per cent, also a 15-year high.

 

The last time buyers saw such prices was back in 1997 -- when COEs were still separated into seven categories.

 

The open category, usually used for cars, also crossed the $70,000 mark. It finished at $73,600 up from $65,058, an increase of 13.1 per cent.

 

Commercial vehicle premiums increased the least -- it ended 12.8 per cent higher at $37,001.

 

Motorcycle premiums remained marginally unchanged at $2,091 from $2,078.

 

Fewer COEs to come

 

Last Friday, the Government had announced that Singapore's annual vehicle growth rate will be lowered gradually over the next three years as annual road growth could not keep up with the increase in vehicles.

 

The current 1.5 per cent growth will be cut to an effective one per cent next year, and 0.5 per cent in 2013 and 2014.

 

In practice, the vehicle cap will remain at 1.5 per cent for the first half of the quota year -- February to July 2012.

 

The cap rate will be slashed to 0.5 per cent for the second half of the quota year spanning from August 2012 to January 2013.

 

The new COE quota for February to July 2012 period will be announced in mid-January 2012. Given that the current motor vehicle population stands at 952,009 as of September this year, a 0.5 per cent cap means only about 4,760 vehicles will be added the following year, The Business Times reported.

 

This will then affect the COE quota, which is a function of the stipulated vehicle growth rate, the number of COEs needed to replace deregistered vehicles in the previous six months, and the adjustment for overprojections of vehicle deregistrations in the 2008 to 2009 period.

 

In a Facebook post last Friday, Transport Minister gave the reassurance that COE quota numbers should be 'relatively stable'.

 

Mr Lui said: 'I believe that the graduated changes we are making, coupled with the expected increase in the de-registration of vehicles, should result in relatively stable quota numbers over the next one year or so.

 

'And if the de-registration trends remain generally stable, then it is likely that we should see higher quota numbers from 2013 onwards.'

 

http://motoring.asiaone.com/Motoring/News/...019-305931.html

 

wow

[Ken4555]

.................

 

wasted the increase in COE now does not instantly decrease the car population... grrrrrr....

[Juzzme]

Just see how much $$$ revenue is generated every fortnight. Cut quota a little bit, make some announcements on further impending cuts, send the coe sky high. No wonder top brains deserve top dollar. And it solves the traffic problem too! Amazing talent our elite leaders. SGP is indeed in safe hands.

[Civic6228]

.................

 

wasted the increase in COE now does not instantly decrease the car population... grrrrrr....

 

Where got decrease ????? Still have 1.5% growth and 0.5% growth in Y2012 ...... people pay so high COE. Still have traffic jam during peak hours and so heavy traffic during off peak .... COE not serving it's purpose now liao ...... I will support to cut further ... zero or negative growth....

[Nf0rc3r]

Where got decrease ????? Still have 1.5% growth and 0.5% growth in Y2012 ...... people pay so high COE. Still have traffic jam during peak hours and so heavy traffic during off peak .... COE not serving it's purpose now liao ...... I will support to cut further ... zero or negative growth....

 

U can be sure its coming. its already mentioned in papers to prepare for negative growth. Prepare for a 200k Civic.

[Mllcg]

U can be sure its coming. its already mentioned in papers to prepare for negative growth. Prepare for a 200k Civic.

 

lui tuck yew said negative growth is out of the question as he knows people will most definatly want to buy car after starting to work.

 

so he says 0.5% is enough until they expand the roads.

 

as much as i find there are too many cars, negative growth will not do good

[Forrestcat]

lui tuck yew said negative growth is out of the question as he knows people will most definatly want to buy car after starting to work.

 

so he says 0.5% is enough until they expand the roads.

 

as much as i find there are too many cars, negative growth will not do good

 

Bro Nf0rc3r already mentioned, prepare for a 200k Civic.

A fresh graduate with average income, how to buy?

Unless u doctor, lawyer, Banker etc.....

[Eyke]

A fresh graduate with average income, how to buy?

 

y should fresh grad buy car?

 

[Nodtviedt]

y should fresh grad buy car?

 

Exactly!!

[Mllcg]

y should fresh grad buy car?

 

coz they dont wanna squeeze with no cert Foreign WORKERS.

 

not FT.

 

FWs

[Scenic98]

One property bubble not enough, create another bubble in cars.

[The_Bear]

coz they dont wanna squeeze with no cert Foreign WORKERS.

 

not FT.

 

FWs

I dunno if u notice by your regular wp holders takes lorries to work.

[13177]

COE premiums hit record high? I dont think this round COE price consider high, as i think the highest COE premiums has yet to come.

[Jerrcik]

Lucky i got mine before all this s--t happens. Thxs to 60.1% Thank you so much.......

 

 

[SimonTan]

Funny...Coe was implement to control car population since 20 years ago.

At that early days, the road was jammed up so badly meh? Does it mean those early days, paying Coe was 'wasteful' and really unnecessary. With hindsight, the current road was able to absorbed the greatly increased car population over the last 20 years. Seems to me many were farked for paying for COE in the days before 2005!!!

 

 

[Ysc3]

blame the players, not the game.

 

the game has already been setup for a long time already but new players are joining the game every single day and causing the prices to soar.

 

if no new players or current players dun want t play anymore, then prices will stabilize or even drop.

 

but then when prices drop, more players will enter the game again and .... it will be a never ending game.

[Hermitage]

There's a car for every budget. If a fresh grad absolutely HAD to have a car, just do a search for below $10k and carmart will turn out pages of options for that person. Not that they're very good options, but it's still a car. It still occupies space on the roads, it still contributes to congestion. If it's there first, it'll take your parking spot no matter what car you drive. You could rear-end it just as easily as it could rear-end you. Bottom line is, COE does nothing to control car population, there's one for every budget...

[SimonTan]

That $10k car can drive the most one year, due to Coe age. Still add up to $100k over a ten years period.

You are just dividing the upfront cost into smaller more digestible portion.

 

Not forgetting the repairs and issues with very old cars...etc.

 

If got a reasonable functional car that can drive for 3 years or more at $10,000 in singapore resale market........tell me...I am very interested.

Edited October 20, 2011 by SimonTan