Improved 2024 supply to ease COE prices, but potential demand will fan volatility

THIS year, Certificate of entitlement (COE) prices for passenger cars and commercial vehicles are expected to retreat from the record-shattering levels of 2023, as their supply increases, industry players have told The Business Times.

COE prices for passenger cars broke records in the second half of 2023, driven by low quotas and consistent demand from private-hire vehicle (PHV) fleets.

Generally, COE prices rise and fall in a 10-year cycle, which is the validity period for a COE.