A decline in car-leasing companies securing COEs reflects strong demand from individual buyers.
Between January and October 2024, car-leasing firms secured just 10% of the total certificates of entitlement (COEs) for cars, a significant drop from 24% in 2023 and 26% in 2022. Transport Minister Chee Hong Tat shared this data in Parliament on November 12, highlighting a shift in demand dynamics.
Influence of Car-Leasing Companies on COE Prices
Mr. Chee noted that while leasing companies’ share has decreased, the rise in COE premiums in recent months seems driven primarily by strong demand from individual Singaporean buyers, not by car-leasing companies or foreign bidders. He pointed out that only 2% of COE winners in 2023 and 2024 were foreigners, a slight decrease from 3% in 2022.
The Transport Minister also discussed the challenges in potentially creating a separate COE category for private-hire cars, noting that it would not be a simple process due to fluctuations in demand from leasing firms. If too many COEs were allocated to a private-hire category, it could lead to increased premiums for private cars due to reduced supply, while insufficient allocation could result in higher fares for passengers.
Private-Hire Car Population and COE Availability
As of September 2024, the number of private-hire cars in Singapore rose to 87,845, up from 79,249 the previous year. Despite the government’s ongoing efforts to manage COE supply, the question of balancing supply and demand remains complex.
