Certificate of entitlement (COE) prices ended mostly higher in the latest tender yesterday, as dealers jostled to deliver cars amid a smaller COE supply.
The COE premium for cars up to 1,600cc and 130bhp was at a three-month high of $26,301, up 2.4 per cent from two weeks ago. The COE price for cars above 1,600cc or 130bhp finished 2.6 per cent higher at an eight-month high of $35,403. The price for the Open COE, which can be used for any vehicle type except motorcycles, but ends up largely for bigger cars, also closed at an eight-month high of $36,667 after posting the biggest increase of 3.8 per cent yesterday.
The commercial vehicle COE premium inched upwards by 2 per cent to finish at $26,914.
The motorcycle premium, however, bucked the uptrend by ending 0.5 per cent lower, at $3,689.
Motor dealers said the smaller supply of COEs for the three-month quota period, starting this month, caused prices to creep up. They said parallel importers are also making a comeback after business was dampened by stricter emission rules last year. Indonesia's Gojek, a newcomer on the private-hire scene, is also believed to be adding pressure for COEs.
Singapore Vehicle Traders Association president Michael Lim said the latest results were "expected because of the cut in quota".
"The Budget also provided good news. Earlier, there was some worry that taxes for diesel cars would increase sharply. But, as it turns out, only diesel fuel duty went up by 10 cents," he added.
He foresees premiums staying stable in the coming months.
Mr Nicholas Wong, general manager of Honda agent Kah Motor, said: "Prices look very firm, especially for Category B (above 1,600cc) and E (Open). But the market itself is not fantastic." He noted that parallel import sales are starting to grow, and Gojek could be fuelling demand for cars.
