Blog @ Mortgage Supermart Singapore

Singapore’s first quarter GDP 2013 posted a growth of 0.2% as compared to Q1 of 2012, and 1.8% as compared to the previous quarter Q4 2012, helped by the unexpected surged in stock market trading and other financial services. Singapore STI current stands at about 3393 points which is one of the highest in recent past 5 years and breaking previous limits of about 3200 points. The highest limit STI went up to was about ~3800 points in Oct 2007 before the financial crisis.

The surprise growth as compared to the same quarter in 2012 also saw car COE prices rebounding upwards. Except for Cat C (Goods Vehicle and Buses) which post a drop of $162, all other categories have posted an increase in COE premium ranging from $1840 to $5604. This is equivalent to a rise of about 2.8% to 8.3%. Cat B (Car above 1600 cc) saw the sharpest rise in premium of $5604/8.3%.

COE Bidding Results May 2013

Not only are consumers charged with high COE car prices that would even shock Fast and Furious stars Vin Diesel, Michelle Rodriguez, Gina Carano and Luke Evans, consumers also saw a rise in car financing interest rates. Banks and financial houses offering car loans have raised interest rates financing to about 2.68%.

The rise in interest rates came on the back after the Singapore government announced cooling measures in late February to cool the motor vehicle market, restricting the amount of financing that banks and finance houses can grant to car buyers. Car owners are expected to pay an increase in financing cost of at least 40% – 50% depending on the loan tenure and quantum of financing taken up.

And with the mobile ERP coming up, it seems like owning a car in Singapore is going to cost you not anything less than an arm or leg. Unless you strike lottery or have a rich dad, the most logical decision that would give you the most value out of your hard earned money would be taking public transport and cross your fingers that the train does not break down on you AGAIN.

Appendix: Other supplementary Singapore GDP statistics: