There will be more Certificates of Entitlement (COEs) in the coming months which should, in turn, drive prices further south, reported The Straits Times.
The Land Transport Authority (LTA) announced on Friday (April 15th) that there will be on average 9,634 COEs a month from May to July, a 15 percent increase from the previous three-month quota period.
Car COEs will rise by 14 percent to 8,384 a month. The quota for Cat A COEs will rise to 4,433, a 9.3 percent increase from the previous monthly quota of 4,057. The Cat B COE supply will go up by 21 percent, up from 2,417 to 2,924. For Cat E COEs, which is almost exclusively used for registering bigger cars, the quota will increase to 1,027, a 15 percent increase from the previous quota of 892.
The increase in COE supply is no surprise, fuelled by the scrapping of old vehicles bought during the last supply bonanza about 10 years ago. This is expected to continue for another 18 months or so. However, the higher than expected increase in COE quota is due to the significantly larger number of scrapped vehicles in March. According to data just released by the LTA, 13,580 vehicles were scrapped in March, 46 percent more than the average of the preceding two months.
