Car COEs end lower as tighter rules for private-hire fleets loom

Vehicles on AYE near Clementi Sports Hall on Dec 8, 2016.
Vehicles on AYE near Clementi Sports Hall on Dec 8, 2016. ST PHOTO: LIM YAOHUI

SINGAPORE - Certificates of entitlement (COE) tumbled at the latest tender on Wednesday (Feb 8), a day after the government amended laws to keep a tighter rein on private-hire operators.
COE for cars up to 1,600cc and 130bhp ended at $48,401, down from $50,889 previously. COE for cars above 1,600cc or 130bhp finished even lower at $48,209, down from $52,807. 

Open COE, which can be used for any vehicle type but ends up mostly for bigger cars, closed at $48,556, down from $52,600. 

Bidding for car COEs has been fuelled aggressively by the advent of private-hire players like Uber and Grab. Since their arrival in 2013, the rental and private-hire car population has trebled to more than 50,000 as at end-2016.

With tighter regulations on the cards – including stiffer penalties for infringements – industry watchers expect people will not find driving a private-hire car to make a living or to supplement their income as attractive as before. 

Meanwhile, commercial vehicle COE ended higher at $48,901, up from $47,001; and motorcycle premium soared to a five-month high of $6,412, from $6,052 previously.

Latest COE results:

Category Current COE premium ($) Previous COE premium ($)
A - Car (1600cc & below) 48,401 50,889
B - Car (above 1600cc)  48,209 52,807
C - Goods vehicle & bus 48,901 47,001
D - Motorcycle 6,412 6,052
E - Open 48,556 52,600

Source: Land Transport Authority