Buyers, better grab your new car now before COE goes higher. Many car owners need to change new cars. Don't be surprised if COE for Cat A goes up to $75k by end of 2015 and then $85k by end of 2016. Remember Cat A COE's historical high is $100k, so there is still lots of upside for this COE bullish trend.

Brudder... Cat A has peaked at $65k... with the tsunami coming up, the only way is down....

Cat A down is just temporary. All other categories are all UP !!!!!!!! Huat Ah !!!!!!!!

The next few months will all be UP !!!!!!!!! Huat Ah !!!!!!!!!!!

LOL !!!!!!!!!!

The only person Huat ah! is our government.
release more COE quota and yet premium still increase
Defy the law of supply & demand

Uniquely Stinkapore!!

If you understand economics, price is determined by BOTH demand and supply. Supply of COE increase by x% but demand increase by 3x%, then prices will rise.

Demand for COE will be higher than supply due to:

1. Demand from current car owners replacing their old car to new car.
2. Demand from wealthier families due to higher income and wealth.
3. Boom in property market which allows families to flip and make money.
4. Increase in population.
5. Demand by families buying their 2nd, 3rd and 4th cars due to more working adults in the family unit.
6. Youngsters paid higher salaries.
7. Fall in petrol prices. Those who have been taking taxis now switching to cars.
8. Taxi fares are not cheap and difficult to get taxis during peak periods.
9. People buying to show off.
10. Many more reasons.

It is interesting to note that despite the expected increase in COE supply next month onwards, prices did not drop for all categories except Cat A which dropped marginally. This means demand is very strong as most families are now wealthier today than 10 years ago. With the high demand exceeding supply, we can expect prices to continue its steady bullish climb. Today's COE prices is considered cheap because despite the rise in wages and wealth among residents, prices is still below historical highs of $100k.

10 years ago, the household income could be $80k pa but today the household income can be $160k pa. So COE prices at $70k - $80k is affordable. In addition, over the past 10 years, we have experienced a bullish property market which enable families to profit from their BTO flats and use these profits to buy new cars. For instance, they buy their BTO flat for $200k five years ago. Today, they sell their flat for $500k and buy a new second BTO flat for $200k. With their profit, they can easily afford to buy a new car costing $100k which they can pay in cash. Thanks to the cheap BTO flats, many young families can buy new cars.

This is only transition. With the avalanche of COE expected in next 2 years and the economy slowdown, it's only time that it will drop back to $30k level. Just be patient and dont be a kan cheong spider.

Over the past 10 years, our population has increased by 1 million I think. If you are honestly using your brains, you should know what that means. Demand increase is a lot more than supply increase.

People are not buying cars to show off. On the contrary, because car ownership in Singapore is widespread, you feel pressured to own one just to keep up with your neighbours.

The traffic jam is really bad. What used to take me 20 mins to and fro home and office during Dec period now frequently took me 45mins! If I take MRT, it's 30 mins. but got to endure sun and rain.

Indeed, our car population has been increasing at an unsustainable rate in the past, that is why the car growth rate is tapering to 0.25%. eventually I predict there will be zero growth and then negative growth of car population to bring the numbers down significantly by 30% over the longer term. Road congestion is a contributor to lower productivity. For instance, if you are in sales, the time you take to move from one client to another is now slower due to road congestion and hence your sales are lower. Multiply this over many sectors and that is why our productivity is in bad shape.

I think people are expecting the negative growth of car population in the longer term and that is why demand for new cars and COE is high and rising. The demand is very strong as many families are also buying their 2nd car for their wife and a 3rd and 4th car for their son and daughter to go to work. Some parents give their children new cars as wedding gifts too.