Written Reply to Parliamentary Questions on Update on Contributing Factors for Increased COE Prices in Recent Bidding Exercise
06 Feb 2024In Parliament
Mr Saktiandi Supaat asked the Minister for Transport what are the contributing factors for the increase in COE prices for cars in the recent bidding exercise that concluded on 17 January 2024.
Reply by Minister for Transport Chee Hong Tat:
1. The COE quota supply in the 2nd bidding exercise of January 2024 was similar to the 1st bidding exercise in early January, so the price increases were due to higher demand. More than 9 in 10 of Category A COEs, and about 9 in 10 of Category B COEs were won by individual car buyers who are Singapore residents. Car-leasing companies, which largely bid for vehicles to be leased as Private Hire Cars (PHCs), won 3% of Category A and 2% of Category B COEs.
2. COE prices can fluctuate due to several factors, such as higher demand for new cars due to events like car shows. From February 2023 to January 2024, Singapore residents won about 3 in 4 of Category A and about 2 in 3 of Category B COEs. Car-leasing companies won 21% of Cat A and 24% of Cat B COEs, lower than the 27% of Cat A and comparable to the 24% of Cat B COEs they won in the preceding one year. This shows that the increase in COE prices in 2023 compared to 2022 was not mainly due to car-leasing companies.
3. As MOT earlier stated, the COE quota for Categories A, B and C will continue to increase in 2024 before reaching the peak supply period from 2026.
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Reply by Minister for Transport Chee Hong Tat:
1. The COE quota supply in the 2nd bidding exercise of January 2024 was similar to the 1st bidding exercise in early January, so the price increases were due to higher demand. More than 9 in 10 of Category A COEs, and about 9 in 10 of Category B COEs were won by individual car buyers who are Singapore residents. Car-leasing companies, which largely bid for vehicles to be leased as Private Hire Cars (PHCs), won 3% of Category A and 2% of Category B COEs.
2. COE prices can fluctuate due to several factors, such as higher demand for new cars due to events like car shows. From February 2023 to January 2024, Singapore residents won about 3 in 4 of Category A and about 2 in 3 of Category B COEs. Car-leasing companies won 21% of Cat A and 24% of Cat B COEs, lower than the 27% of Cat A and comparable to the 24% of Cat B COEs they won in the preceding one year. This shows that the increase in COE prices in 2023 compared to 2022 was not mainly due to car-leasing companies.
3. As MOT earlier stated, the COE quota for Categories A, B and C will continue to increase in 2024 before reaching the peak supply period from 2026.
