SINGAPORE- The Certificate of Entitlement (COE) quota for February to April will rise by only 2%, a significant slowdown compared to the previous quarter.
COE supply surged by 27% from November 2023 to January 2024. A total of 14,707 COEs will be available for the upcoming period, with increased quotas for Categories A, B, and C, according to the Land Transport Authority (LTA) on January 29.
Category C’s quota for goods vehicles and buses will increase by 4%, with 1,170 COEs available.
For Category B (larger vehicles), supply will rise by 3%, with 3,895 COEs available.
Category A, for smaller mass-market cars, will have 5,609 COEs, a 2% increase.
The authorities will also advance guaranteed deregistration for non-extendable Category D COEs for five years to reduce supply volatility.
COE quotas for Categories A, B, and C will continue rising in 2024, reaching a peak supply period in 2026. The Category D quota in 2024 is expected to remain similar to 2023.
The new COE quota offering starts on February 5. The May-July 2024 quota will be announced in April.
COE prices rebounded on January 17 after a two-year low in the previous bidding.
The COE quota consists of three components
25% of replacement COEs from vehicles de-registered between January and December 2023.
A 0.25% annual growth allocation for Category C based on the December 31, 2023, vehicle population.
Adjustments for taxi population changes, expired COEs, the Early Turnover Scheme for commercial vehicles, and guaranteed deregistration redistribution for Categories A, B, and D.
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