SINGAPORE – Almost everywhere in the world a new car begins to lose value as soon as it leaves the showroom, except sometimes in the rich little island state of Singapore and this is one of those times.
The market phenomenon is a result of Singapore's unique quota system for controlling the number of cars on an island that is home to 5.6 million people and can be driven across in under an hour. The price of COEs, introduced in 1990, have skyrocketed in recent months due to unlocked demand following the Covid-19 reopening and an influx of rich foreigners relocating most notably from Hong Kong. – it happens twice a month – COEs cost 40 per cent to 50 per cent more than the same time last year across the main private car categories, and a whopping 120 per cent to 170 per cent more than in 2020.