The Land Transport Authority (LTA) of Singapore has announced a significant increase in the Certificate of Entitlement (COE) quota for the quarter spanning November 2023 to January 2024. This move comes as COE prices continue to surge, hitting new highs across all car categories in recent weeks.
Additional Allocation to Ease Demand
In a decisive action to address the growing demand for vehicles, the LTA revealed that an additional 1,614 COEs for Categories A, B, and C will be reallocated to the upcoming quarter’s quota. This is in addition to the 1,895 COEs previously announced last month, bringing the total supply for the quarter to 14,388.
Breakdown of COE Quota Increases
- Category A (smaller mass-market cars) will see a 35% increase from the previous quarter, totaling 5,513 COEs.
- Category B (larger cars) will also experience a 35% quarter-on-quarter increase, with a new quota of 3,800 COEs.
- Category C (goods vehicles and buses) will have the most significant hike, a 65% rise from the preceding quarter, offering 1,129 COEs.
There were no adjustments made to the quotas for other categories.
Future COE Availability
The LTA advises potential buyers to consider that the COE quota for Categories A, B, and C is expected to continue rising in 2024, reaching a peak supply period from 2025 onwards. However, the quota for Category D (motorcycles) in 2024 is anticipated to remain comparable to that of 2023.
Bidding Commences Soon
Bidding under the newly increased quota is set to commence on November 6. The LTA also stated that it would announce the COE quota for the bidding period from February to April 2024 in January of next year.
Conclusion: Navigating Rising Demand
The LTA’s move to up the COE quota reflects a proactive approach to managing the burgeoning demand for vehicle ownership in Singapore. By increasing the supply of COEs, the authority aims to moderate the escalating prices and ensure a balanced vehicle market. As the city-state gears up for more COEs in the coming quarters, potential buyers are encouraged to stay informed and plan their purchases strategically.
Also learn about COE Premiums Surge to New Highs with Category B Crossing $150,000 Mark.
