COE premiums fall in U-turn from June

Customers look at cars at the Nissan car showroom in Leng Kee Road on Jan 6.
Customers look at cars at the Nissan car showroom in Leng Kee Road on Jan 6.PHOTO: ST FILE

Certificate of Entitlement (COE) prices fell across the board at the close of the month's first tender exercise yesterday.

The results were in contrast to the previous round of bidding last month, which saw COE premiums for cars climbing to highs for the year.

Premiums for cars up to 1,600cc and 130bhp fell by 5.3 per cent, from the year's high of $55,200 to $52,301.

Meanwhile, COE prices for cars above 1,600cc or 130bhp dipped a marginal 1.6 per cent - from $57,010 to $56,089.

Premiums in the open category - which can be used for any vehicle type but ends up mainly for bigger cars - dropped by 2.4 per cent from $57,390 to $56,002.

Mr Eddie Loo, managing director of CarTimes Automobile, said that the jump in car COE prices last month was likely due to buyers rushing into the market - a "knee- jerk" reaction to the Government easing car-financing rules in May.

"With higher COE prices, dealers are pricing (their cars) higher, so buyers are now adopting a wait-and-see approach," he said.

Mr Raymond Tang, first vice-president of the Singapore Vehicle Traders Association, reckons consumers are holding back in the wake of Britain exiting the European Union.

Potential buyers may also be waiting for the announcement later this month of the next quarter's COE supply quota, for the months of August to October, he added.

Meanwhile, COE prices in the commercial vehicle category fell marginally by $113, from $48,002 to $47,889. Motorcycle premiums also dropped from $6,303 to $6,012, sliding 4.6 per cent.

Adrian Lim

A version of this article appeared in the print edition of The Straits Times on July 08, 2016, with the headline 'COE premiums fall in U-turn from June'. Print Edition | Subscribe