The LTA has seemingly responded to the bubbling crisis of skyrocketing COE prices with a tweak to the COE quota calculation method yet again.
Announced on 20 January 2023, the move will see the number of COEs available for bidding in each quarter based on a rolling average of de-registrations from the previous four quarters - or one entire year - with effect from 1 February 2023.
After slipping slightly in the first bidding round of Jan, COE prices rebounded in Categories A and B this past Wednesday To understand this, the number of COEs for the upcoming quarter of February to April 2023 will be 25% of the number of de-registrations from January to December 2022.
This amendment marks the second time that the LTA has tweaked its COE quota calculation method in just under a year.
Prior to last August, the supply of COEs for bidding in each period was based purely on de-registrations from the previous quarter (or three months). The calculation method was then changed to base the COE supply available for bidding off a rolling average of de-registrations from the previous two quarters (or six months).
Only the August to October 2022, and November 2022 to January 2023 periods followed this method of calculation.
The LTA hopes that the changes introduced will help further reduce the quarter-on-quarter volatility of COE supply. The latest bidding round this past Wednesday saw prices in Categories B and E both still hovering over $100,000, while Category A rebounded to almost $90,000.
Announced on 20 January 2023, the move will see the number of COEs available for bidding in each quarter based on a rolling average of de-registrations from the previous four quarters - or one entire year - with effect from 1 February 2023.
This amendment marks the second time that the LTA has tweaked its COE quota calculation method in just under a year.
Prior to last August, the supply of COEs for bidding in each period was based purely on de-registrations from the previous quarter (or three months). The calculation method was then changed to base the COE supply available for bidding off a rolling average of de-registrations from the previous two quarters (or six months).
Only the August to October 2022, and November 2022 to January 2023 periods followed this method of calculation.
The LTA hopes that the changes introduced will help further reduce the quarter-on-quarter volatility of COE supply. The latest bidding round this past Wednesday saw prices in Categories B and E both still hovering over $100,000, while Category A rebounded to almost $90,000.
