Singapore’s Land Transport Authority (LTA) announced on Monday (29 Jan) that the Certificate of Entitlement (COE) quota for the February to April 2024 quarter will see a modest increase of 2 percent.
This marks a significant slowdown from the 27 percent surge witnessed in the previous November 2023 to January 2024 quarter.
For the upcoming quarter, a total of 14,707 COEs will be available, spanning across various categories. Specifically, the quotas for categories A, B, and C are set to increase. Category C, which includes goods vehicles and buses, will see a 4 percent hike from the previous quarter, offering 1,170 COEs.
ategory B, catering to larger cars, will experience a 3 percent increase, making 3,895 COEs available. Category A, typically reserved for smaller mass-market cars, will have a quota of 5,609 COEs, marking a 2 percent rise.
In a strategic move to smooth out fluctuations in quota supply, the LTA plans to expedite the deregistration of five-year non-extendable Category D COEs. This move aims to stabilize the COE supply and demand.
The LTA forecasts a continuous increase in COE quotas for Categories A, B, and C through 2024, with peak supply expected to hit in 2026. However, the Category D quota for 2024 is anticipated to remain relatively unchanged compared to 2023 levels.
The new quota period’s bidding is set to commence on February 5, 2024. Meanwhile, the COE quota for the subsequent bidding period, spanning May to July 2024, will be announced in April.
This update follows a recent rebound in COE prices on January 17, after they had dipped to their lowest in almost two years in the previous bidding exercise.
The COE quota is determined based on three key components: twenty-five percent of replacement COEs from vehicles deregistered between January and December 2023, a provision for 0.25 percent annual growth for Category C based on its vehicle population as of December 31, 2023, and adjustments accounting for changes in the taxi population, expired COEs, the Early Turnover Scheme for commercial vehicles, and redistribution from guaranteed deregistrations for Categories A, B, and D.