Singapore-traffic-jam
According to one of the latest News Article from Channel News Asia:
“The Land Transport Authority (LTA) announced on Monday (Oct 23) that Singapore’s vehicle growth rate will be cut to zero, down from the current 0.25%, for all private passenger cars (Categories A and B) and motorcycles (Category D).The change will take effect from February next year as the Government continues to steer Singapore towards becoming a car-lite society. Source: CNA 
As Singapore’s vehicle growth rate is reduced to 0%, we should expect Certificate of Entitlement (COE) premiums to go up. Why?

To put it in a simple logic, when there’s an increasing population and increasing affluence in Singapore BUT if demand for private cars on a per capita basis remains unchanged, this will definitely raise up the prices.

The growth rate has been steadily cut over the past decade, with the last round taking place in Feb 2015, when it was halved from 0.5 to 0.25%. Then-Minister for Transport Lui Tuck Yew had signalled that growth rate would likely drop to zero eventually.

The Land Transport Authority (LTA), also made the announcement on Monday (Oct 23) as it revealed the Certificate of Entitlement (COE) quota for November to January 2018, said the cut is driven by land constraints and ongoing improvements to the public transport system.

12% of Singapore’s total land area is taken up by roads and there is “limited scope” for further expansion. Meanwhile, the rail network has grown in length by 30% over the past 6 years – with new projects in the pipeline – including new buses and bus routes added.

What does this means to you as a car owner?

If you are planning to purchase a new car soon, you should act immediately so that you don’t have to pay a higher price in near future when this is implemented. (When supply is low, the price will go up.)
However, if you are planning to sell your car, then you should hold on to your car first and wait till the price go up, so that you can get a higher price.
Do you still have any doubts? Do not worry, Car Source is always ready to assist our customers. Just contact us and we will provide you with some useful advice if you intend to buy or sell a car in Singapore.