January 2011

COE prices 05-01-2011

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COE Open Bidding

JANUARY 2011 1st Open Bidding Exercise has ended on 05/01/2011 16:00 hrs


Category Quota QP($) PQP($)
A CAR (1600CC & BELOW) & TAXI 614 38,889
B CAR (ABOVE 1600CC) 481 69,000
C GOODS VEHICLE & BUS 205 35,111
D MOTORCYCLE 340 1,503
E OPEN 309 75,789
QP: Quota Premium
PQP: Prevailing Quota Premium

Category Received Successful Unsuccessful Unused
A CAR (1600CC & BELOW) & TAXI 1,192 602 590 12
B CAR (ABOVE 1600CC) 790 474 316 7
C GOODS VEHICLE & BUS 294 205 89 0
D MOTORCYCLE 398 337 61 3
E OPEN 475 305 170 4

Received: Total Bids Received
Unused: Unused Quota carried forward


Some relief in sight for COE crunch
Cut in supply of COEs to be spread out over three years
By Goh Chin Lian
Published: January 11 2011,
The Straits Times
A LESS drastic than expected cut in the number of certificates of entitlement (COE) for the next six months brought some relief to potential car buyers and motor traders yesterday. 

They now expect COE premiums to stabilise, or at least not breach last month’s highs which were unprecedented in more than a decade. 

The respite came from the Transport Ministry accepting a proposal by motor traders to spread out a one-off adjustment for the over-projection of vehicles taken off the road – and hence the oversupply of COEs – in 2008 and 2009. 

An excess of 9,577 COEs that were to be shaved off this year will now be adjusted over three years instead, Transport Minister Raymond Lim told Parliament. 

He said this was to give the industry and car buyers more time to adjust. ‘These are one-time corrections, and will not affect the long-term growth in the vehicle population,’ he added. 

What this means is that a total of 22,368 COEs will be available from next month to July, the Land Transport Authority (LTA) said in a press statement. 

This is a 3 per cent cut from the previous six months’ supply of 23,063 COEs. 

The LTA added that the cut would have been 17 per cent if the adjustment was made over a year; in other words, 19,175 instead of 22,368 COEs. 

Industry observers had feared even deeper cuts, which would have led to sharper rises in COE prices, deterred more prospective car buyers, and worsened months of slow sales. 

A three-year adjustment was fair to motor traders, said Mr Teo Hock Seng, president of the Motor Traders Association (MTA), which proposed the change. ‘We’re mildly surprised it’s not so severe a cut,’ he said. 

Motor traders also pointed out that the smaller reduction in COEs was skewed by a 35 per cent increase in certificates for goods vehicles and buses. This was because more such vehicles were taken off the road in the second half of last year compared to the preceding period. 

COEs for cars up to 1,600cc, the mainstay of drivers here, were still fewer by 15 per cent. 

The 12 per cent reduction in COEs for cars above 1,600cc was slightly offset by the release of 7 per cent more open COEs. These can be used for any category of vehicle, but are more commonly used for larger-capacity cars. 

MTA vice-president Michael Wong expects COE prices for cars above 1,600cc to stay at the current $69,000 or to rise, as dealers of European makes report strong orders. 

Motor traders were less certain about the future COE premiums for smaller capacity cars, now at $38,889. 

Nissan agent Tan Chong Motor’s general manager Ron Lim noted that their COE supply shrank while demand could pick up with the economy doing well. He said: ‘The most optimistic view is it will hover around the same numbers.’ 

COEs, which give one the right to buy a car here, are central to Singapore’s Vehicle Quota System, which enables the Government to control the growth of the vehicle population and road congestion. 

Anyone seeking to buy a car has to bid for a COE in that category of vehicle, determined by engine size. 

The number of COEs which the Government releases used to be based on its projection of the number of vehicles that would be deregistered. Last year, the formula was tweaked to be based on the actual number of vehicles taken off the road. 

Premiums soaring to levels not seen since the late 1990s at the Dec 8 round of bidding stoked worries of runaway prices and speculation. 

Among those concerned were Dr Lim Wee Kiak, chairman of the Government Parliamentary Committee for Transport and a Member of Parliament for Sembawang GRC. 

He was assured yesterday by Mr Lim that the COE system had been modified many times to curb speculation and attempts to profiteer were not likely to be significant.

For instance, a bid in any of the two car categories or for motorcycles must be made in the name of a buyer, and the COE registered in his name. 

He cannot transfer his car in the first three months, and a levy is imposed if it changes hands between the fourth and the sixth months. 

Only individuals can transfer open COEs and COEs for goods vehicles and buses, and just once in the first three months. 

The minister refrained from proposing any measures to control the surge in COE prices, which he noted were determined by market forces of supply and demand. 

Last year’s supply of COEs was reduced due to the relatively lower deregistrations and the one-off adjustments. 

He said: ‘This reduction in supply, together with the rising demand for COEs in a strong economy, naturally pushed prices up.’