Watch out when COE price declines

Certificate of Entitlement (COE) to own a car in Singapore is a good barometer of consumer sentiment with the economy of Singapore. If the people living in Singapore had no confident with the economy, COE premium declined.

The following table tracked the Open Category COE premiums using January second bidding numbers.

Year Month Open Cat COE ($) Remarks
2000 Jan  48,800
2001 Jan  30,712 Dot com bubble burst
2002 Jan  32,001
2003 Jan  27,416 SARS (Second Bidding starts)
2004 Jan  22,801
2005 Jan  19,002
2006 Jan  9,801
2007 Jan  12,599
2008 Jan  13,801
2009 Jan  3,000 Global Financial Crisis
2010 Jan  21,899
2011 Jan  67,009
2012 Jan  67,101
2013 Jan  97,889 Uber starts
2014 Jan  78,810
2015 Jan  76,790
2016 Jan  51,000 Grab starts
2017 Jan  52,600
2018 Jan  44,000 Uber leaves in April
2018 Aug  32,311
2018 Sep  31,801 COE 1st Bidding

January 2000 COE premium was $48,800. COE premium declined to $30,712 in 2001 when Singapore economy (GDP) gone negative. COE premium dropped to $3,000 in 2009 when Singapore economy was again in negative territory due to the Global Financial Crisis.

Since 2010, COE premium had been climbing. It reached a peak of $97,889 in 2013 before declining subsequently. 2013 was the year UBER came to Singapore. GRAB started in 2016.

At the start of this year 2018, the COE premium was $44,000. UBER left Singapore in April 2018.

COE premium declined in August and September and the last bidding exercise resulted in current COE premium of $31,801. This level of COE premium suggests a lack of confidence with the economy going forward.

Copyright © 2018, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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