COEs shoot up on zero growth fears

[SINGAPORE] Certificates of entitlement (COE) ended sharply higher across the board at the latest tender Wednesday, on panic buying triggered by the government's announcement to freeze Singapore's vehicle population.

COE for cars up to 1,600cc and 130bhp closed at a six-month high of $47,112, up from $41,617. COE for cars above 1,600cc or 130bhp finished at a 15-month high of $57,414, up from $49,996 previously.

Open COE, which can be used for any vehicle type except motorcycles but ends up mostly for bigger cars, closed at $57,000 to also hit a 15-month high, up from $52,000.

Commercial vehicle COE ended even higher at $58,036 - the highest since April 2015 - up from $51,890. Motorcycle premium raced to a three-month high of $5,502, up from $4,903.

Motor traders point to fears of higher premiums from next year, when COE supply is likely to be even smaller on account of the Land Transport Authority's decision to institute zero growth to Singapore's already shrinking vehicle population.

Senior Minister of State for Transport Lam Pin Min told Parliament on Monday that the plan to cut the growth rate from 0.25 per cent today to zero from next February is not expected to have a significant impact on COE prices.

THE STRAITS TIMES

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