SINGAPORE - Certificate of entitlement (COE) prices ended lower across all categories in the latest tender on Wednesday (Aug 21), in spite of a lower COE supply till October.
COE premiums for cars up to 1,600cc and 130bhp ended at $31,917, down 2.47 per cent from $32,725 in the previous tender.
COE prices for cars above 1,600cc or 130bhp closed at $38,602, down 3.5 per cent from $40,001 previously.
Premiums for open COEs, which can be used for any vehicle except motorcycles, finished at $40,002, down 1.26 per cent from $40,512 previously.
Commercial vehicle COE prices closed at $26,501, down 4.67 per cent from $27,800 previously.
Motorcycle COE premiums ended at $4,301, down 2.25 per cent from $4,400 previously.
The drop in prices came even as supply cuts to COEs kicked in this month.
The quota for cars up to 1,600cc for the August-October period is nearly 26 per cent smaller than the preceding three months at 2,112 certificates a month.
The quota for cars above 1,600cc is almost 9 per cent smaller at 2,083 certificates a month. The Open category is 5 per cent smaller at 709 a month.
Mr Neo Nam Heng, chairman of diversified motor group Prime, said that under normal circumstances, prices of COEs would have risen due to the quota cuts.
"This shows that the market is a bit sick. I think people are worried about the economy," he said, noting that business appeared to be slower at many showrooms the past two weekends.
"I think the prices will stabilise around this level in the mid-term."