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.
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.