In the second COE bidding exercise in June, premiums for all categories continued to rise.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went up by $1,506 (2.8 percent) to end the bidding tender at $55,200.

Premiums for Cat B, larger cars with more than 130bhp or engine displacement larger than 1,600cc, increased by $1,010 (1.8 percent) and ended at $57,010.

In Cat E, the open category, prices went up $2,290 (4.1 percent), with premiums closing at $57,390.

Though changes are not as significant as they were in the first round of bidding, COE prices continue their upward trend for the second round in June. This could be due to the fact that when MAS announced that they were easing car loan guidelines last month, a flurry of car buyers rushed to showrooms.

With cars continuing to stay relatively affordable, it's clear that new car buyers will continue to find it easier to come up with cash upfront for their new wheels, leading to the increase in demand and ultimately COE prices.