Amidst increases in both COE supply and car-buying demand recently, premiums have continued to float around the $100,000 line for all categories.
COE premiums in 2024 were arguably nowhere near their 2023 peaks - but could additional reprieve come still in 2025, especially when February swings around?
Despite the increased supply, COE premiums have still been on a steady rise in recent months - but could further relief be on its way now?
Despite a COE supply-boost over the past quarter, premiums have crept (slowly) back up again, with Cat A seeing the most significant increase.
As the cut-and-fill method continues to bolster COE supply, premiums finally appear to be cooling off. Meanwhile, de-registrations are still on the rise.
Although an unprecedented 'cut-and-fill' method has increased the opacity of the COE system, the recent rise in de-registrations is still worth noting.
It appears that the end of sky-high premiums may not yet be in sight, as slowing de-registrations suggest that the COE quota for May to July is set to fall.
COE premiums have levelled out recently, as data suggests an impending supply increase for Cats A and E. Still, don't expect prices to fall sharply - if at all.
While premiums have cooled off this week, the continued upwards trajectory for Cats A, B and E recently has still been undeniable - and unprecedented.
Premiums have broken six figures for the first time in two decades. Still, with a projected quota shrinkage, it appears that we may not have crossed the peak.
It remains to be seen if COE premiums will continue scaling new heights, but with a projected quota shrinkage for May to Aug, don't expect a sudden cooling off.
COE prices are expected to rise, while fewer projected car deregistrations will lead to COE supply shrinking in the upcoming quarter.
COE prices continue to climb, with a projected decrease in COE supply likely to provide continued support for COE premiums.
With lower car deregistration, the average monthly COE supply for February to April 2021 is projected to decrease by 11%.
With COE supply projected to fall, we can expect COE premiums to continue to climb, as year-end sales and promotions are likely to drive new car demand.
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