Singapore’s Certificate of Entitlement (COE) quota is set to experience a modest rise for the February to April 2024 quarter. The Land Transport Authority (LTA) has announced a 2.2% increase, which translates to a total of 14,707 COEs, up from the previous quarter’s 14,388. This adjustment marks a continuation of the trend in quota increments, albeit at a slower rate compared to the significant jump observed in the November 2023 to January 2024 period.
Category-Wise Distribution
The upcoming quarter will see varied increases across different COE categories:
- Category A (smaller mass-market cars): The quota will ascend to 5,609, reflecting a 2% rise from the prior quarter.
- Category B (larger or more powerful cars): There will be 3,895 COEs available, a 3% increase.
- Category C (goods vehicles and buses): This category is set to see a 4% hike, with 1,170 COEs allocated.
Strategic Adjustments and Future Outlook
LTA’s approach includes a “cut-and-fill” strategy, where additional COEs from guaranteed future deregistrations of vehicles on five-year, non-renewable COEs are reallocated to stabilize the current supply. This method aims to reduce the volatility in COE supply as Singapore’s car market anticipates a surge in COE availability expected in 2025.
Impact and Considerations
The slight increase in the COE quota is anticipated to influence bidding behavior and COE prices in the coming months. Stakeholders, including potential car buyers and the automotive industry, will be closely monitoring how these adjustments play out in the market dynamics. As the COE quota for the May to July 2024 bidding period awaits announcement in April, the automotive community remains attentive to LTA’s future directives and the broader implications for Singapore’s vehicular landscape.
Also learn about Significant Reduction in COE Premiums for Larger Vehicles in Singapore.
