COE supply to dip by 1.3 per cent in February-to-April quota

There will be a total of 10,452 COEs spread across the five categories. ST PHOTO: CHONG JUN LIANG

SINGAPORE - The supply of certificates of entitlement (COE) will dip by 1.3 per cent for the next three months from February to April.

There will be a total of 10,452 COEs spread across the five categories, said the Land Transport Authority (LTA) in its regular quota announcement on Friday (Jan 14).

This is slightly lower than the current November-to-January quota of 10,590.

For cars up to 1,600cc and 130bhp, there will be 1,062 COEs each month, one fewer a month than the figure from November to January.

For larger cars above 1,600cc or 130bhp, there will be 1,099 COEs a month, marking a 6.3 per cent drop from 1,173.

There will be 360 Open COEs per month, an increase of 24.1 per cent from 290. Open COEs can be used for any vehicle type except motorcycles but end up mostly for bigger cars.

The monthly allocation for commercial vehicles will be 152, down by 15.6 per cent from 180.

Motorcycle COE supply will drop by 1.6 per cent from 822 to 809 per month.

Industry players were not surprised by the figures, pointing to the largely stable deregistration rate in the last quarter, which is the key determinant of the new quota.

They do not expect significant changes to COE premiums in the next three months.

The overall market is still weak, said Mr Ng Choon Wee, commercial director at Komoco Motors, referring to the relatively quiet showrooms on recent weekends.

Mr Nicholas Wong, general manager at Kah Motors, said: "I don't think there will be big moves in terms of premiums in the next three months."

Mr Samuel Yong, director for marketing and business strategy at Borneo Motors, noted that while COE premiums have fallen in recent rounds of bidding, they remain at a high level.

"There is also no clear sign of economic recovery with the Omicron virus variant and the semiconductor crisis. I believe it will be largely business as usual," he added.

As for the outlook in the coming months for premiums, Ms Sabrina Sng, a managing director at Wearnes Automotive for the new premium Swedish brand Polestar, said this will depend on future COE supply announcements.

"I just hope that the quota doesn't get cut further like it was 10 years ago at the trough of COE supply," she said, referring to the period from 2012 to 2013 that saw premiums breaching $90,000 for the car categories.

The next quota announcement for May to July is expected in April.

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