Currently, every auto owner is required to pay approximately $37,000 for a certificate before they are legally allowed to drive their vehicle. The supply is limited, and certificates are distributed by auction.
The annual vehicle growth rate for goods vehicles and buses will stay at 0.25% until the first quarter of 2021, LTA said.
Bloomberg reports the current going rate for the smallest vehicles is more than 30,000 US dollars-that's only for the permit-not the price of the auto. The country's population of 5.6 million is expected to rise to almost 7 million by then.
"We have lowered the vehicle population growth rate from 0.5% per annum to 0.25% per annum, and will likely need to lower this to zero per cent in the future".
According to a press release, 12% of Singapore's land area is taken up by roads.
Come February next year, the city-state will no longer allow any new vehicles into the country, citing land shortage and overcrowded roads.
Singapore already had tight limits on the ownership and use of private passenger vehicles; now, it allows the number of cars to increase by just 0.25 percent per year.
The COE quota for the next three months from November 2017 to January 2018 will be 25,913, based on the existing 0.25 percent vehicle growth rate.
The problem is, Singapore has no room to put any more cars. This includes Singapore's metro rail, which, like many rapid rail systems in major cities, has been suffering from significant delays. Valid for 10 years, the average cost of the certificate is Sg$50,000, making Singapore one of the most expensive countries to buy a vehicle.
A 2014 survey by Deutsche Bank found that Singapore was the priciest place in the world to buy a vehicle - with prices for a mid-size auto up to five times as much as the same auto would cost in the US.
Despite the government's policies, there are almost one million vehicles on Singapore's roads.