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Powered By: The Straits Times
11 Aug 2017 | Local News : Singapore

COE premiums for cars finished higher in the latest tender exercise in August - a change that industry observers attributed to a longer-than-usual break.


Certificate of Entitlement (COE) premiums for cars finished higher at the close of the latest tender exercise yesterday - a change that industry observers attributed to the longer-than-usual break between bidding exercises.


COE premiums for cars finished higher in the latest tender excercise, a change attributed to the longer-than-usual break in-between bidding exercises
For cars up to 1,600cc and 130bhp - known as Category A - COE premiums rose by 6.3 percent from last month's $44,002, to $46,778. COE prices in Category B - cars above 1,600cc or 130bhp - moved up 7.4 percent from $50,001 to $53,711. In the Open category, which is often used for the purchase of bigger cars, COE premiums climbed by 5.3 percent, from $50,101 to $52,751.

Mr. Michael Lim, President of the Singapore Vehicle Traders Association, said he was not surprised by the results. The interval between COE tenders is typically two weeks, but there was a three-week gap between yesterday's bidding and the previous exercise that ended on 19th July, said Mr. Lim. "The dealers will sell more cars over this period. They could have also taken some orders during the National Day public holiday as well," he added.

There are two COE bidding exercises every month, typically starting on the first and third Monday, and closing on Wednesday of the same week. As 1st August fell on a Tuesday, the month's first bidding exercise started on 7th August. Apart from the longer gap, some observers like Mr. Raymond Tang, Managing Director for Yong Lee Seng Motor, said the increase in car COE prices could be due to the smaller quota.

For the August to October period, there is a monthly average of 3,630 COEs available in Category A, about 4.4 percent fewer than the quota of 3,797 in the previous quarter. For Category B, the quota fell by 2.7 percent, from 2,641 to 2,570. COE quotas are adjusted every quarter based on factors, including the de-registrations in the preceding quarter and the overall vehicle population growth rate.

Meanwhile, COE prices for commercial vehicles saw minimal movement, dropping by $8 from $42,809 to $42,801. COE prices for motorcycles dipped by 2.6 percent, from $5,851 to $5,701. Mr. Tang also speculated that superstitious buyers may have wanted to register their cars before the upcoming Seventh Month or Hungry Ghost Festival, hence driving up the demand for COEs as well.
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