UPDATE: One commenter correctly pointed out that the COE quotas have not be reduced yet. The surge is due to anticipation that number of COEs will be cut next month. Wonder how much more it will surge when the cuts actually take place...
LTA will reduce the number of COEs by roughly 30% [Link] for next month. Don't worry, our govt is not going to collect less money because they cut the supply of COE because the price of each COE has gone up by more than 30% for all categories:
A. CAR (1600CC & BELOW) & TAXI $28,389 from $21,421 (+32%)
B. CAR (ABOVE 1600CC) $36,089 from $25,190 (+43%)
C. GOODS VEHICLE & BUS $32,890 $23,979 (+37%)
E. OPEN $42,001 from $27,001 (+55%)
Quite amazing really!
COE prices skyrocket
Home > Breaking News > Singapore > Story Mar 24, 2010
CERTIFICATE of entitlement (COE) premiums in the latest tender on Wednesday spiralled northwards by more than $10,000 - a quantum leap unheard of since the 1990s. Following news that supply will shrink drastically, bidders sent COEs to new highs. Premium for cars up to 1,600cc climbed by about $7,500 to $28,389. The rate for cars above 1,600cc was up by nearly $10,000 to $36,089. Open COE, which can be used for any vehicle type but ends up usually for cars, skyrocketted to $42,001 - more than $14,000 above its previous level two weeks ago. Even the commercial vehicle COE ended dramatically higher. It closed at $32,890, nearly $6,000 more than before. Motorcycle COE was the only one that chalked a modest increase - of about $40 to close at $1,200. Observers said the supply shrinkage starting from next month spooked motor traders, sparking the rush for COEs. They also noted that speculators are back in force, driving premiums up further. Vincent Ng, product manager of Honda agent Kah Motor, said the sharp increases were 'definitely because of dealers of luxury cars', who have fatter margins than others. 'They have to have COEs in hand to sell cars,' he said. 'And speculators are also back.'