COE supply shrinks across all categories, Cat B supply drops 14%

The supply of Certificates Of Entitlement (COE) for the May-July 2021 quota period is set to drop across all car categories. This is the second quarter in which COE supply has dropped across all categories.

The decline in COE supply is in line with sgCarMart's projection published in March where we estimated a 16 per cent, 22 per cent, and 11 per cent decline in COE supply for Cat A, B, and E respectively.

Around 5,334 COEs will be available for bidding each month for the upcoming quarter, a fall from the average of 5,835 available in the quarter from February to April 2021, the Land Transport Authority announced on Thursday (April 15, 2021).

The COE supply for Cat A cars (up to 1,600cc and 130bhp) will average 1,657 a month, down from 1,766 for the February-April period.

Meanwhile, the COE supply for Cat B (above 1,600cc or 130bhp) will average 1,618, a sizable fall from the 1,883 during the February-April period.

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COE supply for Cat E likewise also sees a fall, from the current monthly average of 592 down to 517 for the May-July period. COEs in this category can be used for any vehicle type except motorcycles but end up almost exclusively for bigger cars.

Commercial vehicle COE bidders will have an average of 314 certificates a month in the next quarter, down from the 511 of this current quarter. A provision of 0.25 per cent per annum growth for Category C vehicles based on the Category C vehicle population as at Dec 31, 2020 has been made.

The motorcycle COE supply will expand from 1,083 to 1,228.

The next quota announcement for the bidding period of August 2021 to October 2021 will be made in July 2021.

This article was first published in sgCarMart.