$2...
What can you buy with $2? Chicken rice will be the standard answer most people will give. But since Wednesday, the answer is COE [certificate of entitlement]. You need one of those to own a car in Singapore. And they don't come cheap. It's usually a couple of thousand of dollars. But since it works on a bidding system, once in awhile, the price happens to be a single digit. It has happened before.
And why might you ask have this happened now? I will tell you. Just a theory, might not really be TRUE. The Singapore government releases a certain number of COEs at each bidding and people bid a price for it. It works something like the NUS module bidding system. IF the number of COEs exceed the number of bidders, then the price will be the price of the lowest bid. In this case $2.
In this time of recession, most people who buy the <1300cc category of cars are the ones that are most affected. So logically, you don't expect these people to buy cars now. I mean, if you can afford a high end Ferrari, even if the downturn affected you that badly, you're not going to downgrade to a new 1300cc car now.
And this cheap COE has sparked a wave of people buying 1300cc and below cars. I hope they know that the influx of people buying would mean that in the next round of COE bidding, there will likely be a higher number of bidders than COEs. Which means that the price is going to go back up.
So what can you buy with $2? Definitely not a COE in the next round.
And why might you ask have this happened now? I will tell you. Just a theory, might not really be TRUE. The Singapore government releases a certain number of COEs at each bidding and people bid a price for it. It works something like the NUS module bidding system. IF the number of COEs exceed the number of bidders, then the price will be the price of the lowest bid. In this case $2.
In this time of recession, most people who buy the <1300cc category of cars are the ones that are most affected. So logically, you don't expect these people to buy cars now. I mean, if you can afford a high end Ferrari, even if the downturn affected you that badly, you're not going to downgrade to a new 1300cc car now.
And this cheap COE has sparked a wave of people buying 1300cc and below cars. I hope they know that the influx of people buying would mean that in the next round of COE bidding, there will likely be a higher number of bidders than COEs. Which means that the price is going to go back up.
So what can you buy with $2? Definitely not a COE in the next round.
posted by alvin_c at 2:21 pm
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