COE prices up because economy is doing well, says Lui

[Aces]

By Goh Chin Lian
COE prices are soaring because the economy is doing well and not because the Government is further slowing the growth in the vehicle population to 0.5 per cent, as that kicks in only in August, Transport Minister Lui Tuck Yew said on Sunday.

He was responding to a steady stream of complaints about certificate of entitlement (COE) prices - now at their highest in more than a decade - from residents during a walkabout in Cheng San.

Mr Lui said high COE prices are due to strong demand - with wages still on the rise, dealers introducing new car models and more people bidding now in expectation that premiums may rise further.

Come August, the annual allowable vehicle population growth rate goes down to 0.5 per cent, from 1.5 per cent today and 3 per cent before 2009.

source: http://www.straitstimes.com/Breaking...ry_789267.html

[Ah_ZhaN]

How come my wages never soar since economy is doing well ??????????????????????

[xersion]

Pls send him for supply and demand course


Xersion @ Tapatalk

[AlvinLeong]

You just have to give it to them, these guys are good. Seriously I beginning to like them very much.

[ymmij]

of course economy is good... Look at the ministers' pay.... Damn good...

[Kohaku]

"Open eye speak prawn language"

It is because of the decrease in COE quota that make big players to bid high price to secure COE so that they could sell vehicles to ready "buyers" who need them badly or have the money to do so. and they could keep the COE for at least 3 months after securing it.

Anyway I feel that with the high price of owning a vehicle, taking public transport, including taxi, everyday is much cheaper option.

[AlvinLeong]

Lim Swee Say that time already "piu cui" said they are deaf to criticisms.

Not the first time he "piu cui", he said "when retired, hopefully the CPF still there".....

They are living in their own world, surrounded by yes man who shield them from the real news from ground.

[Ah_ZhaN]

Ppl asking him for solution, not the reason why price is soaring.


Well, what comment would one expect, coming from one who claimed he does not watch porn. :P

[globalcookie]

Bidding system an Quota as the words already suggested, will have the biggest effect on COE price.

Before the reduction (at 3%), there were a lot more COE quota per month, demand and supply, so price lower. Now, it is only half (a 1.5%), definitely price will shoot up. Later this year (at 0.5%), we can see COE price maybe even as high as $150k (or higher).

Let's say... (illustration only)
Growth rate | Quota per mth | Highest Bid | 2,000th Bid | 1,000th Bid | 333th Bid
3% | 2,000 | $200,000 | $15,000 | $50,000 | $150,000
(successful bid price $15k)

1.5% | 1,000 | $200,000 | $15,000 | $50,000 | $150,000
(successful bid price $50k)

0.5% | 333,000 | $200,000 | $15,000 | $50,000 | $150,000
(successful bid price $150k)


The COE successful bid price is the last bid price of the quota. Thus even if bid price remains constant, just move the quota and successful price will have changed.

[FireSpitter]

60% of people welcomed this. Don't complain if you were one of them who did vote for them. As Barney said "Can Lemon Law apply to votes?"