COE and ERP...

[Dennis Ng]

After happily issuing many, many COEs in the last few years, with most of the roads jammed, the government "Helped" you by introducing at least 17 New ERP gantries last year.

This year, they suddenly realise they need to "halve" the number of COEs issued, guess what will happen to COE Prices? Well, COE Prices already more than doubled in the last few months and likely to head even higher.

Looks like Heads they Win, Tail they also Win. Maybe this is Win/Win to them. haha.

COE supply this year may be 50% of 2009's

By SAMUEL EE

SINGAPORE - This year's new car registrations could plunge to levels not seen since 1999, but certificate of entitlement (COE) premiums would be way higher than what they were 11 years ago because of a bigger car population.

In 2009, the maximum COE quota size for passenger cars was 71,000 although only 68,862 cars were actually registered. This year, in a worst-case scenario, the number of car COEs could contract by half to just 34,762 - lower than 1999's new car registrations of 36,183 units.

There will be one major difference from 1999 though: the COE premium. Back then, the peak for a COE that could be used for registering a passenger car was $53,000. But with today's demand significantly higher than what it was in the late 1990s, conventional wisdom says COE premiums should surge far beyond that level....