In an interview, SMU Assistant Professor of Strategy & Entrepreneurship (Education) Terence Fan opined that the decline in certificate of entitlement (COE) prices may be due to seasonality and economic uncertainty amidst the Singapore government’s announcement to add 20,000 COEs across various vehicle categories. He noted that it remains uncertain whether this decline will be sustained, as future COE prices will largely depend on demand levels. Prices may also rebound if interest rates decrease and alternatives, like private-hire vehicle costs, stay high.
