The heart is driving COE prices more than reason

Fear, status and human desire are fuelling continued demand for cars.

- Victor Kwan

I recently visited the latest car fair at Singapore Expo. With certificate of entitlement (COE) prices hitting another record high, it was little surprise - and perhaps a relief - that the crowd was thinner than in past years.

Did the smaller crowd size suggest Singaporeans might finally be regaining some sensibility and pulling back from the recent car-buying frenzy sparked by the Land Transport Authority's announcement of rebate reductions for electric vehicles (EVs)? I left the exhibition hall and settled down at a nearby coffee bar, ready to write about this.

Before I could begin, something outside the window caught my attention: a family of four, with two young children clutching balloons emblazoned with car brand logos, walking back to their car. A little farther away, another family appeared, with a grandparent in tow, heading in the opposite direction and into the fair.

These scenes triggered another thought: Perhaps the appetite for cars is less about logic, and more about emotion.

NEEDS TRUMP LOGIC

Over the years, many have tried to explain or tame the COE market with economics - myself included, in an Opinion piece for The Straits Times earlier in 2025, lauding the increased COE supply and predicting that COE prices would come down in tandem.