COE prices: Irrational exuberance?

COE prices have reportedly reached 10-year highs in all categories, at a time when economic growth is expected to slow down globally and in Singapore as well. The proximate cause of the price increases is the expected reduction next year in vehicle quotas by the LTA.

One the demand side of the equation, I wonder whether some Singaporeans continue to be overly optimistic about the country's economic prospects next year and beyond. It also looks as if no one is paying attention to peak oil and the risk of another economic crisis.