Rise in COE premiums led by motorcycle category

Certificate of Entitlement (COE) prices ended higher across the board at the latest tender yesterday, with the motorcycle premium chalking up the biggest rise of 6.1 percent to hit $6,801, the second highest amount on record. A tiered additional registration fee - announced on Monday in the Budget - was introduced to make motorcycle taxes more progressive.

Mr. Norman Lee, Honorary General Secretary of the Singapore Motorcycle Trade Association, said the higher taxes for high-end bikes 'will depress COE prices in the long run'. "But in the short run, COE supply is still far short of demand," he noted.

Mr. Nicholas Wong, General Manager of Honda agent Kah Motor, said there will be 10 percent more COEs for motorbikes soon because the two-wheeler category will no longer have to contribute to the Open COE category.

"There was no reason for companies to bid aggressively," he said, adding that speculative 'hoarding' by bigger players might have contributed to the price rise. "The Government should make bike COEs non-transferable, like those for cars," he added.

Meanwhile, the COE premium for cars up to 1,600cc and 130bhp rose by 2.1 percent to finish at $49,430. The COE price for cars above 1,600cc or 130bhp climbed five percent to hit $50,621. The price for Open COEs, which can be used for any vehicle type but ends up mostly for bigger cars, also rose by five percent to reach $51,000. The commercial vehicle COE price inched up 1.9 percent to end at $49,810.

Mr. Wong of Kah Motor said yesterday's car COE price increases were caused by 'panic buying'. When the Land Transport Authority announced last week that this week's COE tender would be delayed by two days, it triggered speculation that changes were afoot that would push prices up. In a self-fulfilling prophecy, premiums all rose on the back of a rush to showrooms at the weekend. "But prices didn't go up by as much as I expected," Mr. Wong added. "Dealers were restrained in bidding. So that is good."