12% of car-owning households have 2 cars, less than 3% own 3 cars or more
12% of car-owning households have 2 cars, less than 3% own 3 cars or more. In Singapore, around 471,000 families possess automobiles, with 12%, or 56,520, owning two vehicles. Only about 3% of these families, or 14,130 people, possess three or more cars. S. Iswaran, Minister of Transport, stated in Parliament on Tuesday that the share of car ownership has remained fairly stable over the years, with no discernible shifts in demand patterns that may have resulted in recent price increases for certificates of entitlement (COEs).
Gerald Giam (Aljunied GRC, Workers’ Party) questioned whether households with multiple vehicles raise COE rates, noting that “because they tend to come from higher-income households, they have the option to pay more for their COEs.” He also inquired whether the government would consider measures to reduce demand for Category A COE from households purchasing their second or subsequent smaller vehicle.
In the most recent tender exercise, the COE for smaller and less powerful cars and electric vehicles was $90,589, not far from the all-time high of $92,100 set in January 2013. In 2022, several categories have also achieved new highs. Mr. Iswaran reacted by blaming the rise in COE premiums on supply rather than demand constraints. He also mentioned that the 10-year COE cycle effects car deregistrations in part due to previous auto registration patterns as well as existing owners who choose to deregister or renew the COEs on their existing vehicles.
“On balance,” he concluded, “any effort to reduce vehicle ownership beyond the first car in any household does not necessarily follow that any effort to restrict automobile ownership beyond the first car in any household will definitely have a dampening influence on COE prices.” Mr Giam then asked if these households contribute to the demand for COEs, noting that 12% of homes had two autos, which he described as a “not insignificant figure.” In response, Mr Iswaran stated that the proportion of households owning several cars has been consistent throughout time, even during periods when COE rates were “not that high.”
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