COE prices mostly drop across the board except for marginal rise in Open category

The latest tender is the second after a three-month suspension.
The latest tender is the second after a three-month suspension.PHOTO: ST FILE

SINGAPORE - Certificate of entitlement (COE) prices mostly ended lower at the latest tender on Wednesday (July 22) - the second after a three-month suspension.

When bidding ended at 4pm, the COE price for cars up to 1,600cc and 130bhp closed at $32,699, 2.45 per cent lower than its previous close on July 8.

The COE premium for cars above 1,600cc or 130bhp finished 2.47 per cent lower at $35,001.

The commercial vehicle COE price dipped 2.51 per cent to end at $23,888.

Meanwhile, the COE price for motorcycles dropped 15.48 per cent to $6,510.

The only exception to the fall in prices was the Open COE category, which can be used for any vehicle type except motorcycles but ends up mostly for bigger cars. It closed 0.03 per cent higher at $35,001.

Traders had said that the rise in COE prices across the board in the previous round of bidding was due to pent-up demand that was partially cooled by a slight increase in COE supply.

Bidding had been on hold from April to June when non-essential businesses were closed to stem transmission of the coronavirus.

Mr Raymond Tang, managing director of Yong Lee Seng Motor, said that the slight dip in prices was due to a correction after prices surged in the last cycle.

But he expects COE prices to rise again in the next three months. This is due to an expected lower quota for the bidding period from August to October, and more people turning to cars as a safer transport option amid the Covid-19 pandemic.

Mr Tang, who is honorary secretary at the Singapore Vehicle Traders Association, added: “A lot of agents are worried about a second wave of Covid-19 infections, which could mean that COE bidding and businesses might stop again.

“So now, whenever there are any orders in hand, they will want to clear them as soon as possible.”