An aerial view of traffic along One Marina Boulevard taken on 22 March 2016.
Certificate of entitlement (COE) prices for cars tumbled at the latest tender as a larger supply of COEs kicked in, a day after the Government amended laws to keep a tighter rein on private-hire operators.
The COE premium for cars up to 1600cc and 130bhp fell by 4.9 percent to end at $48,401, while that for cars above 1600cc or 130bhp ended even lower at $48,209, down by 8.7 percent.
The price for Open COE, which can be used for any vehicle type but ends up mostly used for bigger cars, closed 7.7 percent lower at $48,556.
Bidding for car COEs has been fuelled aggressively by the advent of private-hire players like Uber and Grab. Since their arrival in 2013, the rental and private-hire car population has trebled to more than 50,000 as at end-2016.
With tighter regulations expected, people will not find driving a private-hire car for a living, or to supplement their income, as attractive as before, said industry watchers.
Mr Neo Nam Heng, chairman of diversified motor group Prime, said: “Ten to 30 percent of drivers will fail to secure a vocational licence. Also, some drivers will feel uncomfortable about having to display a decal on their cars.”
Vocational licensing and tamper- evident decals are among requirements that the private-hire industry will have to meet by this year.
However, Mr Neo said the new rules and regulations were unlikely to have pulled the COE prices down. He said a bigger quota – 12 per cent more car COEs from this month to April – and weaker consumer sentiment on account of economic jitters were bigger reasons.
“The next thing to watch is interest rates,” Mr Neo said, adding that a rate hike would translate to higher cost for motor firms and dampen buying further.
The COE price for commercial vehicles ended 4 per cent higher at $48,901, while the premium for motorcycles climbed 5.9 percent to hit a five-month high of $6,412.
Related story: Car COE supply to grow by 11.6 percent for Feb-April quota
Related story: Bigger COE supply fuels hope of lower premiums
