Is the COE system working?

Would you ever believe that price of a car in land A is equal to the price of a home in land B. Is this for real?

According to Bloomberg Businessweek news, the cost to own and drive a car in Singapore is now $150,000, about the same as the median price of a U.S. Metropolitan home. The question then becomes are the home in USA undervalued or cars in Singapore overvalued? Judging from the car showroom poor sales, I suspect Singapore cars is overvalued.

Clearly the COE system which is intended to ease traffic congestion to Singaporeans is not working. The fact remains there is slow moving traffic in many areas during peak travelling hours. In addition, there are insufficient car parks lots in many areas. In Macpherson, the problem is so bad that cars are parked illegally at the double yellow line at night. This is despite a new car park was built recently. The COE system I suspect has to go.

Value investors can sell their cars and then buy a home in USA. When the price of cars fall by half, investors can sell their homes and buy 2 cars.