COE prices rise for all categories
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Category A COE premium is back to being above $100,000 after falling below in June.
ST PHOTO: TARYN NG
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- Singapore COE premiums rose across all categories, with Category A reaching $101,102, driven by increased buying interest after mid-year holidays.
- Some motor traders predict sales dips following the latest premium hikes may lower Category A prices.
- The LTA is expected to announce next COE quota soon, with dealers divided on whether increased supply will significantly reduce premiums.
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SINGAPORE – Prices of certificates of entitlement (COE) rose across the board at the latest tender exercise that closed on July 9.
The premium for a Category A COE, meant for smaller and less powerful cars and electric vehicles (EVs), edged up by 3 per cent to $101,102, from $98,124 at the previous exercise. The price of a Category B COE, meant for larger and more powerful cars and EVs, was $119,600, an increase of 2.5 per cent from $116,670.
The price of an Open category (Category E) COE was $118,500 – 1.4 per cent higher than the $116,889 at the previous exercise.
Although Open Category COEs can be used to register any type of vehicle other than motorcycles, they are almost always used for bigger and more powerful cars.
At $66,689, the price of a commercial vehicle (Category C) COE went up by 2.6 per cent from $65,000 at the previous exercise.
The motorcycle (Category D) COE premium climbed 9.2 per cent from $8,600 to $9,389.
A COE is needed to register a vehicle in Singapore and this is usually included in the price of the vehicle.
The three-week gap – a week more than typical – since the previous tender allowed dealers more time to collect sales orders.
In addition, motor traders said that they have seen more buying interest in the previous two weeks as more customers returned from their mid-year holidays.
In all, there were 4,562 bids received at the latest tender, 8.4 per cent more than at the previous round, which had 4,207 bids. There were also more unsuccessful bids this time, at 1,516 bids, compared with 1,160 bids.
Mr Nicholas Wong, chief executive of Honda agent Kah Motor, said it is likely that those who had failed to secure COEs this time will return at subsequent tenders, adding to the demand for COEs and keeping premiums high.
However, Mr Ng Choon Wee, commercial director of Komoco Motors, which distributes Hyundai, expects sales to slow down, based on what he observed in May, when the Category A COE price breached the $100,000 mark.
Mr Ernest Tan, deputy chief executive of Vincar Group, distributor of Aion and Proton eMas brands, reckons that lower sales may help to bring the Category A premium below $100,000 in the coming tenders.
Mr Anthony Teo, managing director of Sime Motors, which distributes BYD, agrees that consumers will hold back in the wake of the latest COE results, but said: “After a while, the customers will get used (to high COE prices) and come in again. At the end of the day, it is still about the offers that dealers can bring to the customers.”
The Land Transport Authority (LTA) is expected to announce the COE supply for the August to October period soon. The quota will be mainly determined by the average number of vehicles scrapped in the previous 12 months, along with the redistribution and injection of COEs by the LTA.
Motor dealers anticipate a higher COE supply in the next three months than that in the current May to July period, which was already higher than the February to April period. Previous COE supply increases, however, have not been significant enough to bring down premiums, noted Kah Motor’s Mr Wong.
