Buyers in one of the world’s most expensive car markets just missed their chance to snag one at the cheapest price in five years.
Car-ownership permit costs in Singapore have gained since February after ride-hailing companies obtained licenses for their fleets and the regulator eased rules on vehicle loans in May. The price of a permit, called a certificate of entitlement, for small cars and taxis reached $52,301 in the last round of bids, enough to buy a new Jaguar XE in the US or Mercedes-Benz B180 in Hong Kong.
The cost of the licenses -- whose supply the government controls to ease traffic snares -- may climb in the near term amid restricted supply and as buyers enter the market following the looser auto-loan rules. Over a longer period, the number of permits available and outlook for an economy that’s projected to slow this year from an average growth of more than 5 percent in the past decade will influence car demand, according to Song Seng Wun, an economist at CIMB Private Banking in Singapore.
“It’s all about finding that balance in terms of what is needed for the economy, and what is needed in terms of quality of life,” Song said. Without a system to ration road usage and vehicle ownership, “the whole jolly island could well be overwhelmed by bumper-to-bumper cars, the number of cars itself,” he said.
The regulator has tightened the supply of car permits for the immediate term. No more than 25,843 COEs will be issued from August to October, the Land Transport Authority said July 12. That’s a drop of 11% from three months earlier. It will announce the next three-month supply in October.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
Car-ownership permit costs in Singapore have gained since February after ride-hailing companies obtained licenses for their fleets and the regulator eased rules on vehicle loans in May. The price of a permit, called a certificate of entitlement, for small cars and taxis reached $52,301 in the last round of bids, enough to buy a new Jaguar XE in the US or Mercedes-Benz B180 in Hong Kong.
The cost of the licenses -- whose supply the government controls to ease traffic snares -- may climb in the near term amid restricted supply and as buyers enter the market following the looser auto-loan rules. Over a longer period, the number of permits available and outlook for an economy that’s projected to slow this year from an average growth of more than 5 percent in the past decade will influence car demand, according to Song Seng Wun, an economist at CIMB Private Banking in Singapore.
“It’s all about finding that balance in terms of what is needed for the economy, and what is needed in terms of quality of life,” Song said. Without a system to ration road usage and vehicle ownership, “the whole jolly island could well be overwhelmed by bumper-to-bumper cars, the number of cars itself,” he said.
The regulator has tightened the supply of car permits for the immediate term. No more than 25,843 COEs will be issued from August to October, the Land Transport Authority said July 12. That’s a drop of 11% from three months earlier. It will announce the next three-month supply in October.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
0 comments:
Post a Comment