SINGAPORE — The Land Transport Authority (LTA) has announced an increase in the Certificate of Entitlement (COE) quota for Categories A and B over the next few quarters, starting from the second bidding exercise on 15 May. The one-time adjustment is intended to reduce the supply volatility in those car categories.
The COE Category A quota for May 2023 to July 2023 will see an increase of 24 per cent from 2,798 to 3,358, while Category B will see an increase of 15 per cent from 2,367 to 2,663 for the remaining five bidding exercises in the same quarter.
This brings the total COE quota for May 2023 to July 2023 to 10,431, an increase of about 9 per cent from 9,575.
In a press release, the LTA said that it will bring forward the guaranteed deregistrations of 5-year non-extendable COEs which are due to expire when supply is projected to be higher. This will lead to the gradual redistribution of around 6,000 such COEs over the next few quarters.
The LTA added that the one-time adjustment would not change the zero Vehicle Growth Rate (VGR) on the overall car population.
"LTA has identified the specific vehicles in the vehicle registry with these 5-year non-extendable COEs. When the identified vehicles are deregistered in future, their quota will not be returned to the pool for bidding," said LTA in a statement to the media.
The announcement comes on the back of recent all-time high prices for COE premiums in four out of five categories. Category A, which includes cars up to 1,600cc and 130bhp, or electric vehicles (EV) up to 110kW, saw prices close at S$103,721 in the bidding exercise on 5 April and surpassing the S$100,000 mark for the first time.
In the same bidding exercise, Category B – cars above 1600cc and 130bhp, as well as EVs higher than 110kW – touched a new all-time high of S$120,889, while the Open Category saw a new price record of S$124,501.
Prices for all three categories fell slightly during the most recent bidding exercise on 4 May but continued to hover around their respective all-time high prices.