Certificate of Entitlement (COE) prices for cars rose slightly at the first tender for this year.
Premiums for small cars - up to 1,600cc and 130bhp - closed at $50,101. This is a 0.7 per cent increase of $350 from $49,751 two weeks ago.
Meanwhile, COE prices for bigger cars - above 1,600cc or 130bhp - rose 3.9 per cent to $53,106 from $51,109.
COE premiums in the open category, which is applicable to any vehicle type but is typically used for big cars, increased by 5.2 per cent. Prices in that category rose from $50,389 to $53,001.
Mr Nicholas Wong, general manager of Kah Motor, said the bidding results took him by surprise.
"Bookings have not been good. Buyers have just returned from their year-end holidays, and the market has been slow," he said.
He surmised that the demand for COEs could have been fuelled by private-hire car firms expanding their fleets.
These companies loan cars to drivers of private-hire car services Grab and Uber.
Bookings have not been good. Buyers have just returned from their year-end holidays, and the market has been slow.
MR NICHOLAS WONG, GM of Kah Motor, saying the results took him by surprise.
Singapore Vehicle Traders Association first vice-president Raymond Tang said that car COE prices could have increased due to the upcoming Singapore Motorshow from Jan 12 to 15.
Dealers may be expecting a flood of car orders during that weekend to raise COE premiums after the show, he said, and chose to bid early to fulfil their current orders.
Meanwhile, COE prices for goods vehicles and buses dropped by 6.5 per cent, from $49,500 to $46,302.
Premiums for motorcycles also fell from $6,101 to $6,053 - a 0.79 per cent decrease.