SINGAPORE: The method for computing the quota available for Certificate of Entitlement (COE) bidding will be adjusted to reduce volatility in supply, the Land Transport Authority (LTA) announced on Friday (Jul 22).
From August, supply will be based on a rolling average of vehicle deregistrations over two quarters instead of one.
This is to “reduce the quarter-on-quarter volatility of COE supply while being responsive in returning the COEs of deregistered vehicles to the bidding pool”, LTA said in a media release.
Under the current system, the quota of COEs available for bidding in each quarter is primarily based on the number of vehicles deregistered in the previous quarter, with a one-month lag time for processing and computation.
“With effect from Aug 1, the number of COEs available for bidding in each quarter will be based on a rolling average of deregistrations over the last two quarters,” LTA said.
“The start of each new COE quota bidding period will continue to be one month after the close of each calendar quarter.”
For example, the number of COEs for the upcoming August to October quarter will be half the number of vehicles deregistered from January to June.
The number of COEs for the following quarter, November to January, will then be half the number of vehicles deregistered from April to September.