No major changes to COE market; COE falling trend to remain for some time

COE changes

SINGAPORE: Transport Minister Lui Tuck Yew said the government will not be making major changes to the Certificate of Entitlement (COE) market in the near-term.

Speaking in Parliament on Wednesday, Mr Lui responded to suggestions to smoothen the COE supply to help stabilise COE premiums.

Mr Lui said the suggestion is a good idea but the difficulty is how to do it without causing other problems.
In order to make better use of Singapore’s scarce land space for roads, Mr Lui also revealed that LTA is studying the feasibility of a ‘reversible flow’ traffic scheme.
He said: “This is ideal for stretches where traffic data shows a ‘tidal’ pattern, where traffic is heavy in mainly one direction during the morning peak hours, and in the opposite direction in the evening.
“We have identified the Kranji Expressway-Pan Island Expressway stretch connecting the residential areas in the north to jobs in the west as a feasible corridor for a ‘reversible flow’ scheme. LTA has awarded a contract for advanced engineering consultancy studies, which are now in progress.”

Meanwhile, latest COE bidding results in the first tender since tighter loan policies were announced last month saw prices for cars above 1,600c plunge over S$34,000 in the latest COE bidding results released on Wednesday.

The new price? S$58,090, a steep drop from the previous price of S$92,667.Prices for the Open COE also fell sharply to $65,001, down over S$26,000 from $91,910.In contrast, COE for cars up to 1,600cc finished at $74,689, just down slightly from the $78,301 before the stricter loan policies and tiered taxation system were announced. Observers are commenting that the rich buyers are waiting to enter at a lower COE price and from my estimate, there is still some waiting to do before we reach equilibrium point.

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