Certificate of entitlement (COE) prices ended mostly higher in the latest tender yesterday, arresting a downtrend which started more than a year ago.
The COE price for cars up to 1,600cc and 130bhp closed 4 per cent higher at $38,510. The premium for cars above 1,600cc or 130bhp finished 0.7 per cent lower at $37,330.
The premium for the Open COE, which can be used for any vehicle type except motorcycles, ended 0.9 per cent higher at $38,389.
Mr Neo Nam Heng, chairman of the diversified Prime group, described yesterday's results as "normal" because of the Cars@Expo sales event two weekends ago.
"Because of orders collected at this event, there is bound to be a small rebound in May and June," he said.
Despite the latest results, car COE prices are still hovering at their lowest in over a year.
The commercial vehicle COE premium finished 0.6 per cent higher at $34,202.
The motorcycle premium closed at $7,115, hardly changed from the $7,114 price previously.
Traders said where the two-wheeler COE price will head depends on the response to the Government's recent offer to pay owners $3,500 for each old machine taken off the road.
Industry watchers expect car COE prices to remain relatively subdued for the rest of the year, even if the following three-month quotas are expected to shrink a little.
They said another emission requirement which will kick in in July will render many models unviable here.
This, in turn, will lead to lower demand for COEs.
A new ruling which will include fine particulate matter in the pollution assessment of a car is expected to hit parallel importers hardest as they have limited access to documentation with particulate matter readings.