COE Price 2021: A Record-Breaking Year

The Certificate of Entitlement (COE) prices in Singapore have been soaring to record highs in 2021, driven by a surge in demand for vehicles and a limited supply of COEs.

COE Prices in 2021

The table below shows the average COE prices for different vehicle categories in 2021:

As you can see, all categories of COEs have seen significant price increases in 2021, with Category A and B prices increasing by more than 50%.

Factors Driving COE Price Increases

There are a number of factors that have contributed to the surge in COE prices in 2021:

• Increased demand for vehicles: The demand for vehicles in Singapore has been increasing in recent years, driven by a growing population and rising incomes. This has led to a shortage of COEs, which has pushed prices up.
• Limited supply of COEs: The government of Singapore limits the number of COEs that are issued each year. This is done to control the number of vehicles on the road and reduce congestion. The limited supply of COEs has made it difficult for buyers to obtain them, which has driven prices up.
• Low interest rates: The low interest rates in Singapore have made it more affordable for people to finance the purchase of a vehicle. This has also contributed to the increase in demand for vehicles and COEs.

Impact of High COE Prices

The high COE prices in 2021 have had a significant impact on the Singapore car market:

• Increased cost of vehicles: The high COE prices have led to a significant increase in the cost of vehicles in Singapore. This has made it more difficult for people to afford to buy a car.
• Reduced number of vehicles on the road: The high COE prices have also led to a reduction in the number of vehicles on the road in Singapore. This has helped to reduce congestion, but it has also made it more difficult for people to get around.
• Increased demand for alternative forms of transportation: The high COE prices have led to an increase in demand for alternative forms of transportation, such as public transportation and ride-sharing services.

Tips for Buying a Car in 2021

If you are planning to buy a car in 2021, there are a few things you can do to save money on the COE:

• Consider buying a used car: Used cars are typically cheaper than new cars, and they come with the added benefit of being exempt from the COE.
• Look for discounts and promotions: Many car dealerships offer discounts and promotions on COE prices. Be sure to shop around to find the best deal.
• Consider buying a smaller car: Smaller cars typically have lower COE prices than larger cars. If you don't need a large car, consider buying a smaller model to save money.
• Wait for the COE prices to come down: COE prices fluctuate over time. If you are not in a rush to buy a car, you can wait for the COE prices to come down before you purchase.

Conclusion

The COE prices in Singapore have been soaring to record highs in 2021. This has been driven by a surge in demand for vehicles and a limited supply of COEs. The high COE prices have had a significant impact on the Singapore car market, making it more difficult for people to afford to buy a car. If you are planning to buy a car in 2021, be sure to consider the factors discussed in this article to save money on the COE.