COE prices down marginally for Cat A and B, edge up for Open category
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COE premiums for commercial vehicles and motorcycles were nearly level with those from the last tender exercise.
PHOTO: ST FILE
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SINGAPORE – Certificate of entitlement (COE) prices ended mixed at the latest tender on Aug 21, with premiums for smaller and bigger cars experiencing a dip.
At $93,900, the price for Category A COEs, meant for smaller, less powerful cars and electric vehicles (EVs), was $389 – or 0.4 per cent – lower than $94,289 in the previous exercise on Aug 7
This dip follows four consecutive months of rising premiums in this category.
The premium for Category B COEs, meant for larger, more powerful cars and EVs, dipped 0.2 per cent to $105,889 from $106,101 in the previous exercise, which had seen the price jump $6,101.
The price for Open category (Category E) COEs ended at $106,001, or 0.7 per cent higher than $105,239 previously. These certificates can be used to register any vehicle type other than motorcycles, but are almost always used to register bigger, more powerful cars.
At $9,310, the premium for motorcycle COE (Category D) was down 3 per cent from $9,601.
The commercial vehicle (Category C) COE premium ended at $72,400, which was 1.8 per cent higher than the $71,100 registered at the previous tender.
Motor traders described the slight drop in COE premiums of a few hundred dollars for categories A and B as insubstantial, adding that demand for new cars has remained strong.
Ms Sabrina Sng, a managing director at multi-franchise group Wearnes Automotive, noted that although the number of bids in Category B fell 14 per cent, the premiums stayed relatively stable with a small drop of 0.2 per cent.
A large number of new orders may have led dealers to bid “quite aggressively” so that they can start deliveries as soon as possible, accounting for why prices held strong, she added.
Her company stocked up on Category B COEs this round as it is aiming to complete delivery of its new Polestar 4 sport utility vehicle models quickly, said Ms Sng, who oversees the sports car marque here.
“After the price spike in the last round, the showroom got a bit quieter, but there’s been a lot of customer interest now because of our new upcoming models,” she added.
“We’ve had quite a big reservation bank for these new models.”
Mr Nicholas Wong, chief executive at Honda agent Kah Motor, said there is still high demand for COEs in Category A, fuelled by the large number of EVs in this category. This in turn puts upwards pressure on the premiums.
From his observations at showrooms, people have become used to the high prices and will still buy new cars if they have the intention to do so.
Ms Sng expects COE prices to continue rising because of demand tied to multiple car launches in the third quarter of the year.
Recent launches that have fuelled buying interest include the Honda Accord Hybrid, BMW X2 M35i and Suzuki Swift Mild Hybrid.
Mr Wong said he does not anticipate a significant drop in COE premiums in the next three months, as the number of COEs issued will not be “increasing exponentially”.
