Transport transition
Car-free city – in Singapore it costs 100,000 euros to register a car
The number of vehicles is gradually being reduced. Today there are about as many cars in Singapore as in Hamburg, with a population that is more than three times larger.
© Daniel Ferryanto/Getty Images
The city-state of Singapore imposes draconian limits on the number of motor vehicles. If you want to allow one, you have to bid for a certificate. For a mid-range car that costs 100,000 euros. In return, housing and public transport are subsidized.
A car like the Camry costs around 100,000 euros, which is four times the price in 2020. A small car costs around 70,000 euros COE. But these are not the only taxes. A Camry Hybrid costs 180,000 euros including the certificate, registration fees and taxes; a corresponding car costs around 35,000 euros in the EU. The COE is not valid forever. It expires after ten years, ensuring the city has a continuous source of income. So two COE are needed for the entire life of the car.
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Bubbling income
The number of vehicles is limited in the city-state; fewer than a million are registered, with a population of 5.9 million. Public transport is very well developed and, due to the situation of a real city-state, there is no sprawling surrounding area. The government is prioritizing the expansion of public transport. A car is out of reach for normal incomes. Because of the rising prices of registration certificates, it is more interesting for many people to sell their car and make a profit. As a result of the Covid pandemic, COE prices fell sharply, but are now rising again.
Singapore has different priorities than German cities, for example. Owning a private car is heavily taxed, but the construction of apartments is supported. A small, state-subsidized apartment only costs around 90,000 euros.