COE prices soar because.....

[Mllcg]

The Economy Is Doing Well

 

COE prices are soaring because the economy is doing well and not because the Government is further slowing the growth in the vehicle population to 0.5 per cent, as that kicks in only in August, Transport Minister Lui Tuck Yew said on Sunday.

 

He was responding to a steady stream of complaints about certificate of entitlement (COE) prices - now at their highest in more than a decade - from residents during a walkabout in Cheng San.

 

Mr Lui said high COE prices are due to strong demand - with wages still on the rise, dealers introducing new car models and more people bidding now in expectation that premiums may rise further.

 

Come August, the annual allowable vehicle population growth rate goes down to 0.5 per cent, from 1.5 per cent today and 3 per cent before 2009.

 

 

 

http://www.straitstimes.com/BreakingNews/S...ory_789267.html

Edited April 16, 2012 by Mllcg

[Kungming]

Its already made quite clear that things are going to get much worse!

[Civic6228]

  On 4/16/2012 at 12:24 AM, Mllcg said:

The Economy Is Doing Well

 

COE prices are soaring because the economy is doing well and not because the Government is further slowing the growth in the vehicle population to 0.5 per cent, as that kicks in only in August, Transport Minister Lui Tuck Yew said on Sunday.

 

He was responding to a steady stream of complaints about certificate of entitlement (COE) prices - now at their highest in more than a decade - from residents during a walkabout in Cheng San.

 

Mr Lui said high COE prices are due to strong demand - with wages still on the rise, dealers introducing new car models and more people bidding now in expectation that premiums may rise further.

 

Come August, the annual allowable vehicle population growth rate goes down to 0.5 per cent, from 1.5 per cent today and 3 per cent before 2009.

 

 

 

http://www.straitstimes.com/BreakingNews/S...ory_789267.html

 

IMO not good enough .... as there is still too many cars on the road .... traffic jams everywhere ..... and heavy traffic on the expressway almost 24 hours a day ... should have negative growth like -1.5%....

 

No reduction of COEs = More cars on the road, car population still out of control and COE is not effective at all.

 

 

[Mllcg]

  On 4/16/2012 at 12:37 AM, Civic6228 said:

 

IMO not good enough .... as there is still too many cars on the road .... traffic jams everywhere ..... and heavy traffic on the expressway almost 24 hours a day ... should have negative growth like -1.5%....

 

No reduction of COEs = More cars on the road, car population still out of control and COE is not effective at all.

 

-ve will kill off the entire B&B market coz the COE will be too high.

 

all u will see on the roads are either BMW, Merc, Audi, Lexus and VW.

[Hosaybo]

economy is one thing. no of immigrants increase and the over supply previously (and currently, trying to claw back of previous over supply) is the main culprit. No matter what is the state of the economy, there will still be rich people unaffected and the biggest reasons why the current batch of new cars are the luxury cars is because these are the ones who can affort it. Feel that the gov should at least acknowledge the fact and take up some responsibility for the mistake rather than give some crappy reasons for the sake of giving.

[Bystander50]

So what is he going to do about runaway COE prices?

 

If economy is doing well as ge mentioned, then banks must be doing equally well, so why still give the low pathetic interest rates? Why CPF not restored to 25% to help buyers pay for runaway HDB prices?

 

Is the economy better or worst off now than the 90s?

 

 

[Mllcg]

  On 4/16/2012 at 12:48 AM, Bystander50 said:

So what is he going to do about runaway COE prices?

 

If economy is doing well as ge mentioned, then banks must be doing equally well, so why still give the low pathetic interest rates? Why CPF not restored to 25% to help buyers pay for runaway HDB prices?

 

Is the economy better or worst off now than the 90s?

lol.

 

POSB interest rate just went down recently.

 

now its 0.05% i think for savings acc...

[Curahee]

Doing well for the rich, not for the poor and middle income

[Yardo]

it is crazy if the coe hit 100k again

[13177]

He means COE price soar because the Economy Is Doing Well??? Does he means that during the super low COE era, the economy is not doing well?

Edited April 16, 2012 by 13177

[Bystander50]

  On 4/16/2012 at 12:44 AM, Mllcg said:

-ve will kill off the entire B&B market coz the COE will be too high.

 

all u will see on the roads are either BMW, Merc, Audi, Lexus and VW.

 

The COE system can be tweat to do away with the current bidding system and instead if a system that goes by queuing. LTA continues to release their monthly quota and allocates to those in the queue. Safeguards can be implemented to prevent abuse. This way everyone can own a car.

 

 

[Bystander50]

  On 4/16/2012 at 12:49 AM, Mllcg said:

lol.

 

POSB interest rate just went down recently.

 

now its 0.05% i think for savings acc...

 

Haha, the way they give the interest is almost as good as nothing.

In the 90s, the interest rate for savings account is real high and economy is really doing well up to 97.

 

For that and the fact we are contributing 50% to CPF, high COEs in the late 90s still "acceptable".

 

[Curahee]

  On 4/16/2012 at 12:52 AM, Yardo said:

it is crazy if the coe hit 100k again

 

If u take into the inflation rate, we r still far from it, the highest coe is 110k in 1994, it will cost more than 160k in today 2012 base on inflation calculation.

[Mllcg]

  On 4/16/2012 at 12:59 AM, Bystander50 said:

Haha, the way they give the interest is almost as good as nothing.

In the 90s, the interest rate for savings account is real high and economy is really doing well up to 97.

 

For that and the fact we are contributing 50% to CPF, high COEs in the late 90s still "acceptable".

 

and the rebates they give u for spending also suddenly so many restrictions.

 

0.3% cashback now applies only to SGD purchases

 

and must spend min $500.

 

honestly, if not for my petrol, i would not hit $500/quarter

[Vid]

  On 4/16/2012 at 12:54 AM, 13177 said:

He means COE price soar because the Economy Is Doing Well??? Does he means that during the super low COE era, the economy is not doing well?

 

Good point. Our economy should be in a slump when COE prices was $1 or $2 LTY argument is fundamentally flawed. If it's too many cars on the road, just say too many cars on the road. Why come out with stupid reason that the economy is doing well. It's just another way of saying the gahmen is doing a great job. The truth is, the transport system is lousy and he's trying to find an excuse out of it.

[Civic6228]

  On 4/16/2012 at 12:44 AM, Mllcg said:

-ve will kill off the entire B&B market coz the COE will be too high.

 

all u will see on the roads are either BMW, Merc, Audi, Lexus and VW.

 

Everyone still have the choice on whether they want to take the plunge and buy a NEW car with high COE now ..... I am predicting that COE prices will drop from 2014 as there were more than 100,000 COE relased annually from Y2003 to Y2009. It is about supply and demand. One of the reason why people are changing cars now despite the high COE is that they are able to sell their car at the same price or some are even making profit.

 

B&B cars now are Merc, BMW, Toyota, VW and Audi ... based on new car registered in Y2012.

 

[Wt_know]

economy is GOOD .... to some

 

a. coe broke $80k level and heading $100k

b. suburban condo broke $1500 psf level, 3-4 rooms at $1.8M-$2M >> 80% buyers are sporean

 

HUAT AH !

 

what's next?

Edited April 16, 2012 by Wt_know

[Gukubird]

not because people lose confidence in public transport meh?