The Land Transportation Authority recently made a one-time adjustment in the quota for cars in categories A and B over the next few quarters.
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From May to July, the quota will increase from 9,575 to 10,431. This is a 24% increase. Meanwhile, the quota for Category B cars will increase by 15% in the remaining five bidding exercises for this quarter.
“LTA will bring forward the guaranteed deregistrations of five-year non-extendable COEs which are due to expire when supply is projected to be higher and distribute them over the next few quarters,” said the agency.
Around 6,000 COEs will be redistributed in phases over the next few quarters starting from the bidding exercise on 15 May.
COE premiums in the recent weeks hit record highs, with Category A reaching S$100,000 for the first time on 19 April. On the other hand, Category B cars reached S$120,889 on the same date.
According to Transport Minister S Iswaran, Singapore should expect COE prices to go up.
“I would like to emphasise two points. First, this will help to lessen, but it will not eliminate, volatility in supply. There will still be a degree of supply fluctuation due to historical factors and broader market conditions.”
“Second, the long-term upward trend of COE prices due to rising incomes and zero vehicle population growth will not abate.”
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