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The Certificate of Entitlement or COE is the quota license received from a successful winning bid in a open bid uniform price auction which grants the legal right of the holder to register, own and use a vehicle in Singapore for a period of 10 years.

History

On 1 May 1990, the then transportation unit of Singapore's Public Works Department (PWD) instituted a quota limit to vehicles called the COE when rising affluence in the city-state catapulted land transport network usage and previous measure to curb vehicle ownership by simply increasing road taxes was ineffective in controlling vehicle population growth. The premise was that the small city-state had limited land resources and with demand for vehicle ownership spiralling out of control, would result in traffic conditions exceeding the criterion of a healthy road network that is sustainable by developments in land transport infrastructure resulting in gridlock. Along with a controversial congestion tax called Electronic Road Pricing, the COE system is one of the key pillars in Singapore's traffic management strategies that aims to provide a sustainable urban quality of life at the expense of her citizens.

System

Before buying a new vehicle, potential vehicle owners in Singapore are required by the Land Transport Authority (LTA) to first place a monetary bid for a Certificate of Entitlement (COE). The number of available COEs is governed by a quota system called the Vehicle Quota System (VQS) and is announced by LTA in April of each year with a review in October for possible adjustments for the period of one year starting from May. Approximately one-twelfth of the yearly quota is auctioned off each month in a sealed-bid, uniform price auction system and successful bidders pay the lowest winning bid.

Vehicle Quota System (VQS)

The number of COEs available to the public is regulated by the Vehicle Quota System (VQS) that is calculated every 6 months based on the following conditions:^[1]

Actual number of vehicles taken off the roads (i.e. number of vehicles de-registered)
Allowable growth in vehicle population
Adjustments arising from temporary COEs that have expired or were cancelled.

Formula

Since the change in the total motor vehicle population is given by the number of registrations minus the number of de-registrations and any unallocated quota in a given year may be carried over to the following year, the quota formula^[2] is as follows:

({\text{Total COE Quota}})_{qy}=g.({\text{Motor vehicle population}})_{y-1}+({\text{Projected de-registrations}})_{y}+({\text{Unallocated quota}})_{qy-1}

In the formula above, the subscript $y$ denotes calendar year and the subscript $qy$ denotes quota year (May to April). Initially, projected deregistrations for (calendar) year $y$ were simply taken to be equal to actual deregistrations in $y-1$ but from quota year 1999-2000 onwards, a projected number of deregistrations has been used.

Each year, the quota is set to allow for a targeted $g$ percent growth in the total motor vehicle population, plus additional quota licenses to cover the number of motor vehicles that will be deregistered during the (calendar) year, plus any unallocated quota licenses from the previous quota year.

Validity

The holder of a COE is allowed to own a vehicle for an initial period of 10 years, after which they must scrap or export their vehicle or bid for another COE at the prevailing rate if they wish to continue using their vehicle for a further 5 or 10 years.

At the end of the 10-year COE period, vehicle owners may choose to deregister their vehicle or to revalidate their COEs for another 5 or 10-year period by paying the Prevailing Quota Premium, which is the three-month moving average of the Quota Premium for the respective vehicle category. You do not need to bid for a new COE to renew the existing COE of your vehicle. A 5-year COE cannot be further renewed, which means that at the end of a 5-year COE, the vehicle will have to be de-registered and either scrapped or exported to another country other than Singapore.

Depending on the value of the COE at the time of renewal vehicle owners are subjected to a somewhat emotional dilemma of whether to pay for a new COE which can amount to more than the market value of the vehicle or to deregister their vehicle. The emotional dilemma is certainly enhanced when the vehicle owner is forced to deregister and scrap an otherwise road worthy vehicle due to lack of time or insufficient funds to afford the COE at the prevailing rate.

For comparison in terms of vehicle value to COE value a Second Hand 2007 Mercedes-Benz C200K with a COE expiring in 2017 was advertised at S$86,800. As of November 2013 for a category B Car with a cc above 1600 the COE is priced at S$84,578.

Auction Process

COE biddings starts on the first and third Monday of the month and typically lasts for three days to the following Wednesday. Bidding duration will be pushed further in some circumstances, including public holidays. Bidding results can be obtained through the local media on the same day or on a website.[1]

All COE bids made in the two car categories (Cat A and B COEs) and the motorcycle category (Cat D COEs) must be made in the name of the buyer. Once COE is obtained, the vehicle has to be registered in the name of the bidder, i.e. Cat A, B and D COEs are non-transferable. To provide flexibility, successful COE bids in the Cat C (Goods vehicles and Buses) and Cat E (Open Category) in the name of the individuals are transferable. However these can only be transferred once within the first 3 months, while successful bids by companies are not transferable at all.

An additional restriction on car ownership is the requirement that motor vehicles more than ten years old, known as 'time expired' vehicles, must be either renew the COE for either 5 or 10 years or de-register the vehicle for scrapping or exporting from Singapore, usually to neighbouring countries. For vehicles which have a renewed COE for 5 years the owner of the vehicle has to scrap the vehicle at the end of the period with no option to renew the COE.

Some of these vehicles have been exported farther to other right hand drive countries like New Zealand, which has traditionally imported such vehicles from Japan. The result of the peculiarities of the Singapore car market has resulted in Singapore being the second largest exporter of used cars in the world after Japan. Cars are exported to many countries, including Libya and Trinidad.^[3]

Owners of such vehicles are given financial incentives to do this, which include a Preferential Additional Registration Fee (PARF). This program was implemented to reduce traffic congestion and it complements other measures to curb road usage such as the Electronic Road Pricing (ERP) program.

COE Category Refinement in 2013

In September 2013, The COE system has been refined to include a new criterion for Category A cars. Under the change, the engine power of Cat A cars should not exceed 97 kilowatts (kW). This is equivalent to about 130 brake horsepower. This is in addition to the previous criterion of engine capacity of Cat A cars not exceeding 1600 cubic centimetres. However, cars with engine power output exceeding 97kW will be classified under Category B in COE bidding exercises starting February 2014 despite having engine capacity below 1600 cubic centimetres. The review of the COE categories' criteria was because LTA wanted to differentiate and regulate the buying of mass market and premium cars under Cat A in a bid to control COE prices that hovered closer and closer to S$100,000.^[4]

Historical Records

Quota Premium

March 2009 2nd Open Bidding

Category	Current Quota Premium	Previous Quota Premium	Template:Increase/Template:Decrease	Difference
A (1600cc and below), taxi	S$5,116	S$4,890	Template:Increase	S$226
B (1601cc and above)	S$5,001	S$5,101	Template:Decrease	S$100
C (Goods Vehicle and Bus)	S$5,600	S$5,300	Template:Increase	S$300
D (Motorcycles)	S$912	S$958	Template:Decrease	S$46
E (Open)	S$5,982	S$5,700	Template:Increase	S$282

April 2010 1st Open Bidding

Category	Current Quota Premium	Previous Quota Premium	Template:Increase/Template:Decrease	Difference
A (1600cc and below), taxi	S$34,001	S$28,389	Template:Increase	S$5,612
B (1601cc and above)	S$45,501	S$36,089	Template:Increase	S$9,412
E (Open)	S$49,000	S$42,001	Template:Increase	S$6,999

December 2011 1st Open Bidding ^[6]

Category	Current Quota Premium	Previous Quota Premium	Template:Increase/Template:Decrease	Difference
A (1600cc and below), taxi	S$50,001	S$52,357	Template:Decrease	S$2,356
B (1601cc and above)	S$70,003	S$72,317	Template:Decrease	S$2,314
E (Open)	S$71,000	S$74,345	Template:Decrease	S$3,345

Vehicle growth rate

Period	%	Remark
May 1990 to May 2009	3.0	3.0% + deregistrations as per last annum
Jun 2009 to Jun 2010	1.5	Reduced to 1.5% + deregistrations as per last annum, partly due to low price COE
Jul 2010 to Jul 2012	1.5	1.5% as per last annum + recent half-yearly deregistrations, rate are extended to July
Aug 2012 to Jan 2013	1.0	Taxi are moved to Cat E
Feb 2013 to Jan 2014	0.5	Reduced to 0.5% and expected to last till Jan 2015
Feb 2014 onwards	0.5	Chg to recent quarterly deregistrations

From April 2010, the COE quota calculation was amended. Under the new methodology, the Land Transport Authority (LTA) recycles the COE quota from the actual vehicle deregistrations in the most recent six-month period back into the system. Instead of an annual quota, figures will be revised every six months. For example, there are 800,000 vehicles as of January. Based on the allowable growth rate of 1.5 percent, there will be an additional 6000 COEs for sale every six months. On top of the number of vehicles deregistered in the same period (for example, 20,000) this means the COE quota for July to December will be 26,000.

In early October 2011, Singapore Minister for Transport Lui Tuck Yew has said that Singapore's annual vehicle growth cap would be cut further from 2012. The annual vehicle population growth rate will be lowered from the current 1.5% to 1.0% in 2012, and then to 0.5% in 2013 and 2014.

The lower vehicle growth rate will be more closely aligned to the pace of road growth going forward. However, in May 2012, Lui Tuck Yew did an about turn and said that more COE may be released and the plans to quotas cut car growth would be delayed.

COE range

Previous Category	Highest		Lowest¹		Current Category	Highest		Lowest		Remarks
May 1990 - Apr 1999	SGD	Period	SGD	Period	From May 1999	SGD	Period	SGD	Period	Remarks
Cat 1 (1000 cc & below)	41,008	Jul 1997	210	Feb 1991	Cat A³	92,100	Jan 2013	2	Nov 2008^a	a. Major historical plunge partly due to 2008 financial crisis and over-projections of vehicle de-registrations in 2008/09 b. Major historical plunge partly due to 1997 Asian financial crisis
Cat 2 (1001 - 1600 cc) & taxi	62,208	Jul 1997	909	Mar 1991	Cat A³	92,100	Jan 2013	2	Nov 2008^a
Cat 3 (1601 - 2000 cc)	83,500	Dec 1994	50	Jan 1998^b	Cat B	96,210	Jan 2013	200	Jan 2009^a
Cat 4 (2001 cc & above)	110,500	Dec 1994	800	Apr 1991	Cat B	96,210	Jan 2013	200	Jan 2009^a
Cat 5 (Goods Vehicle & Bus)	39,000	Dec 1994	1	Apr 1991	Cat C	63,035	Dec 2012	1	Dec 2006- Mar 2007^c	c. Partly due to strict emission standards from Oct 2006
Cat 6 (Motorcycle)	3,506	Aug 1997	1	Jan 1994, Feb 1994^d	Cat D	2,704	Jan 2014	1	Nov 2002- Mar 2003^d	d. Mainly due to higher quota and lower than minimum bidders
Cat 7 (Open)	95,986	Dec 1994	998	Mar 1991	Cat E	97,889	Jan 2013	3,200	Jan 2009	-
Cat 8 (Weekend Car)²	45,300	Sep 1994	1,110	Oct 1991	OPC					COE rebate up to $17,000
1. Excluded initial quote for first 3 months (May~Jul'90). Previous lowest record due to higher quota for year 1991 2. It was stopped on Sep 1994, the scheme was replaced by the Off-Peak Car rebate 3. Taxi are moved to Cat E from Aug 2012

Average vehicle pricing

Detailed cost structures when buying a car can be found at this site.[2]
All prices are in Singapore dollars dated March 2012

Compact : S$71,999 - S$89,500
Mid-size : S$81,999 - S$149,000
Full-size sedan : > S$150,000

References

↑ Template:Cite web
↑ One of the biggest reasons investing in a Singapore new launch is an effective things is as a result of it is doable to be lent massive quantities of money at very low interest rates that you should utilize to purchase it. Then, if property values continue to go up, then you'll get a really high return on funding (ROI). Simply make sure you purchase one of the higher properties, reminiscent of the ones at Fernvale the Riverbank or any Singapore landed property Get Earnings by means of Renting

In its statement, the singapore property listing - website link, government claimed that the majority citizens buying their first residence won't be hurt by the new measures. Some concessions can even be prolonged to chose teams of consumers, similar to married couples with a minimum of one Singaporean partner who are purchasing their second property so long as they intend to promote their first residential property. Lower the LTV limit on housing loans granted by monetary establishments regulated by MAS from 70% to 60% for property purchasers who are individuals with a number of outstanding housing loans on the time of the brand new housing purchase. Singapore Property Measures - 30 August 2010 The most popular seek for the number of bedrooms in Singapore is 4, followed by 2 and three. Lush Acres EC @ Sengkang

Discover out more about real estate funding in the area, together with info on international funding incentives and property possession. Many Singaporeans have been investing in property across the causeway in recent years, attracted by comparatively low prices. However, those who need to exit their investments quickly are likely to face significant challenges when trying to sell their property – and could finally be stuck with a property they can't sell. Career improvement programmes, in-house valuation, auctions and administrative help, venture advertising and marketing, skilled talks and traisning are continuously planned for the sales associates to help them obtain better outcomes for his or her shoppers while at Knight Frank Singapore. No change Present Rules

Extending the tax exemption would help. The exemption, which may be as a lot as $2 million per family, covers individuals who negotiate a principal reduction on their existing mortgage, sell their house short (i.e., for lower than the excellent loans), or take part in a foreclosure course of. An extension of theexemption would seem like a common-sense means to assist stabilize the housing market, but the political turmoil around the fiscal-cliff negotiations means widespread sense could not win out. Home Minority Chief Nancy Pelosi (D-Calif.) believes that the mortgage relief provision will be on the table during the grand-cut price talks, in response to communications director Nadeam Elshami. Buying or promoting of blue mild bulbs is unlawful.

A vendor's stamp duty has been launched on industrial property for the primary time, at rates ranging from 5 per cent to 15 per cent. The Authorities might be trying to reassure the market that they aren't in opposition to foreigners and PRs investing in Singapore's property market. They imposed these measures because of extenuating components available in the market." The sale of new dual-key EC models will even be restricted to multi-generational households only. The models have two separate entrances, permitting grandparents, for example, to dwell separately. The vendor's stamp obligation takes effect right this moment and applies to industrial property and plots which might be offered inside three years of the date of buy. JLL named Best Performing Property Brand for second year running

The data offered is for normal info purposes only and isn't supposed to be personalised investment or monetary advice. Motley Fool Singapore contributor Stanley Lim would not personal shares in any corporations talked about. Singapore private home costs increased by 1.eight% within the fourth quarter of 2012, up from 0.6% within the earlier quarter. Resale prices of government-built HDB residences which are usually bought by Singaporeans, elevated by 2.5%, quarter on quarter, the quickest acquire in five quarters. And industrial property, prices are actually double the levels of three years ago. No withholding tax in the event you sell your property. All your local information regarding vital HDB policies, condominium launches, land growth, commercial property and more

There are various methods to go about discovering the precise property. Some local newspapers (together with the Straits Instances ) have categorised property sections and many local property brokers have websites. Now there are some specifics to consider when buying a 'new launch' rental. Intended use of the unit Every sale begins with 10 p.c low cost for finish of season sale; changes to 20 % discount storewide; follows by additional reduction of fiftyand ends with last discount of 70 % or extra. Typically there is even a warehouse sale or transferring out sale with huge mark-down of costs for stock clearance. Deborah Regulation from Expat Realtor shares her property market update, plus prime rental residences and houses at the moment available to lease Esparina EC @ Sengkang
↑ Template:Cite news
↑ COE System to Include Engine Power for Cat A Cars
↑ Template:Cite news
↑ Template:Cite news

External links

Template:Library resources box

[1] Template:Cite web

[2] One of the biggest reasons investing in a Singapore new launch is an effective things is as a result of it is doable to be lent massive quantities of money at very low interest rates that you should utilize to purchase it. Then, if property values continue to go up, then you'll get a really high return on funding (ROI). Simply make sure you purchase one of the higher properties, reminiscent of the ones at Fernvale the Riverbank or any Singapore landed property Get Earnings by means of Renting

In its statement, the singapore property listing - website link, government claimed that the majority citizens buying their first residence won't be hurt by the new measures. Some concessions can even be prolonged to chose teams of consumers, similar to married couples with a minimum of one Singaporean partner who are purchasing their second property so long as they intend to promote their first residential property. Lower the LTV limit on housing loans granted by monetary establishments regulated by MAS from 70% to 60% for property purchasers who are individuals with a number of outstanding housing loans on the time of the brand new housing purchase. Singapore Property Measures - 30 August 2010 The most popular seek for the number of bedrooms in Singapore is 4, followed by 2 and three. Lush Acres EC @ Sengkang

Discover out more about real estate funding in the area, together with info on international funding incentives and property possession. Many Singaporeans have been investing in property across the causeway in recent years, attracted by comparatively low prices. However, those who need to exit their investments quickly are likely to face significant challenges when trying to sell their property – and could finally be stuck with a property they can't sell. Career improvement programmes, in-house valuation, auctions and administrative help, venture advertising and marketing, skilled talks and traisning are continuously planned for the sales associates to help them obtain better outcomes for his or her shoppers while at Knight Frank Singapore. No change Present Rules

Extending the tax exemption would help. The exemption, which may be as a lot as $2 million per family, covers individuals who negotiate a principal reduction on their existing mortgage, sell their house short (i.e., for lower than the excellent loans), or take part in a foreclosure course of. An extension of theexemption would seem like a common-sense means to assist stabilize the housing market, but the political turmoil around the fiscal-cliff negotiations means widespread sense could not win out. Home Minority Chief Nancy Pelosi (D-Calif.) believes that the mortgage relief provision will be on the table during the grand-cut price talks, in response to communications director Nadeam Elshami. Buying or promoting of blue mild bulbs is unlawful.

A vendor's stamp duty has been launched on industrial property for the primary time, at rates ranging from 5 per cent to 15 per cent. The Authorities might be trying to reassure the market that they aren't in opposition to foreigners and PRs investing in Singapore's property market. They imposed these measures because of extenuating components available in the market." The sale of new dual-key EC models will even be restricted to multi-generational households only. The models have two separate entrances, permitting grandparents, for example, to dwell separately. The vendor's stamp obligation takes effect right this moment and applies to industrial property and plots which might be offered inside three years of the date of buy. JLL named Best Performing Property Brand for second year running

The data offered is for normal info purposes only and isn't supposed to be personalised investment or monetary advice. Motley Fool Singapore contributor Stanley Lim would not personal shares in any corporations talked about. Singapore private home costs increased by 1.eight% within the fourth quarter of 2012, up from 0.6% within the earlier quarter. Resale prices of government-built HDB residences which are usually bought by Singaporeans, elevated by 2.5%, quarter on quarter, the quickest acquire in five quarters. And industrial property, prices are actually double the levels of three years ago. No withholding tax in the event you sell your property. All your local information regarding vital HDB policies, condominium launches, land growth, commercial property and more

There are various methods to go about discovering the precise property. Some local newspapers (together with the Straits Instances ) have categorised property sections and many local property brokers have websites. Now there are some specifics to consider when buying a 'new launch' rental. Intended use of the unit Every sale begins with 10 p.c low cost for finish of season sale; changes to 20 % discount storewide; follows by additional reduction of fiftyand ends with last discount of 70 % or extra. Typically there is even a warehouse sale or transferring out sale with huge mark-down of costs for stock clearance. Deborah Regulation from Expat Realtor shares her property market update, plus prime rental residences and houses at the moment available to lease Esparina EC @ Sengkang

[3] Template:Cite news

[4] COE System to Include Engine Power for Cat A Cars

[5] Template:Cite news

[6] Template:Cite news

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