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Prices for certificates of entitlements (COE) have soared to record highs on the back of an announced reduced vehicle growth rate. The premium for a small car (cars 1,600cc and below, including taxis) COE ended at a 15-year high of $56,112. This was an increase of 16.9 per cent from the previous premium of $48,006 at the last bidding on Sept 21. Premiums for big cars (above 1,600cc) saw the biggest jump. It closed at $75,889 up from $63,600, an increase of 19.3 per cent, also a 15-year high. The last time buyers saw such prices was back in 1997 -- when COEs were still separated into seven categories. The open category, usually used for cars, also crossed the $70,000 mark. It finished at $73,600 up from $65,058, an increase of 13.1 per cent. Commercial vehicle premiums increased the least -- it ended 12.8 per cent higher at $37,001. Motorcycle premiums remained marginally unchanged at $2,091 from $2,078. Fewer COEs to come Last Friday, the Government had announced that Singapore's annual vehicle growth rate will be lowered gradually over the next three years as annual road growth could not keep up with the increase in vehicles. The current 1.5 per cent growth will be cut to an effective one per cent next year, and 0.5 per cent in 2013 and 2014. In practice, the vehicle cap will remain at 1.5 per cent for the first half of the quota year -- February to July 2012. The cap rate will be slashed to 0.5 per cent for the second half of the quota year spanning from August 2012 to January 2013. The new COE quota for February to July 2012 period will be announced in mid-January 2012. Given that the current motor vehicle population stands at 952,009 as of September this year, a 0.5 per cent cap means only about 4,760 vehicles will be added the following year, The Business Times reported. This will then affect the COE quota, which is a function of the stipulated vehicle growth rate, the number of COEs needed to replace deregistered vehicles in the previous six months, and the adjustment for overprojections of vehicle deregistrations in the 2008 to 2009 period. In a Facebook post last Friday, Transport Minister gave the reassurance that COE quota numbers should be 'relatively stable'. Mr Lui said: 'I believe that the graduated changes we are making, coupled with the expected increase in the de-registration of vehicles, should result in relatively stable quota numbers over the next one year or so. 'And if the de-registration trends remain generally stable, then it is likely that we should see higher quota numbers from 2013 onwards.' http://motoring.asiaone.com/Motoring/News/...019-305931.html wow

SINGAPORE: One car dealer calls it a tsunami, another describes it as the point of no return. These best sum up sentiments, after COE prices hit fresh highs on Wednesday in the first bidding tender since a reduction in COE supply kicked in. The biggest increase was in the big

CERTIFICATES of Entitlement (COEs) for cars and commercial vehicles all zoomed past $20,000 at the latest tender on Wednesday. These are the highest premiums for cars in six years, and for commercial vehicles in eight. Industry players said recent sales promotions whipped up a demand for new vehicles and fuelled bidding, as did an anticipated cut in COE supply from April. Car COEs all posted double-digit gains: The premium for cars up to 1,600cc climbed 10.8 per cent to $20,501; and for cars above 1,600cc shot up by 16.7 per cent to $22,400. The Open COE category, which can be used for any vehicle type but ends up mainly for cars, rose by 10.1 per cent to $21,899. Commercial vehicle COEs edged up 5.7 per cent to close at $20,090, the highest level since 2002. Only motorcycle COEs dipped - by 4.1 per cent to end at $852. Motor Traders Association (MTA) president Tan Kheng Hwee said besides ongoing discounts and promotional offers on cars, a rush to deliver vehicles ahead of Chinese New Year next month has also contributed to the spike in COE prices. http://www.straitstimes.com/BreakingNews/S...ory_480094.html