In the first round of COE bidding in November, Cat A and Cat B premiums ended higher, with Cat E recording a decrease.
Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, increased by $1,000 (3.19%) and ended at $32,302.
In Cat E, the open category, premiums went down by $900 (2.73%), with premiums closing at $32,000.
This is due to the increase in the number of bids for this round, which isn't surprising. According to brands like Volkswagen, the recently concluded Cars@Expo, held on 27 October, has driven up the demand for new cars and as such, attibuted to the increase in COE premiums in this round.
Popular new cars have also been launched here ever since the last bidding exercise, such as the Hyundai i30 Fastback, the Subaru Forester and the Volkswagen Polo, which were seen at Cars@Expo, too.
The increase in Cat A and Cat B premiums can also be attributed to the longer three-week gap between the last tender exercise and today's, which resulted in more bookings. But even as demand increases, COE premiums may still see a dip in the next round, as the Land Transport Authority has mentioned that the COE supply will increase for cars, by 3.9% starting from November till January.
