[SINGAPORE] Certificate of Entitlement (COE) premiums for mainstream cars fell 4.8 per cent or S$6,105 to S$122,000 in October’s second bidding exercise, marking the first decline in Category A after a series of record highs.
Other categories also mostly dipped in Thursday’s (Oct 23) exercise.
Category A booked its first decline after notching three consecutive record highs in earlier tenders. The category applies to cars with engines of up to 1,600 cc or 97 kilowatts (kW) of power, and electric vehicles (EVs) of up to 110 kW.
It had reached S$128,105 in the Oct 8 tender, and S$119,003 in the Sep 17 exercise. Cumulatively, Category A prices increased by more than S$20,000 over those two rounds, noted Nicholas Wong, chief executive officer of authorised Honda dealer Kah Motor.
“These kinds of prices were something that the market could not accept,” said Wong, who was “not surprised” about Thursday’s “correction” in Category A prices.
“People who can wait, would wait, (because) I don’t think they want to pay that kind of money for the COE of a Category A car,” he said.
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Wong estimated that, as a result of the previous weeks’ record-setting COE prices, new car bookings have fallen by about 50 per cent in the past fortnight.
Bookings refer to consumers placing orders with dealers, who then bid for COEs on their behalf.
“Of course, when bookings drop by so much, the pressure on the COE won’t be that high,” Wong explained.
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In response to media queries, a Land Transport Authority spokesperson said COE prices remain elevated due to “sustained strong demand”; this was “despite the Category A quota supply increasing by 29 per cent year on year”.
“We advise car buyers and dealers to be prudent in bidding for COEs,” the spokesperson added.
The premium for Category B, which covers larger and more powerful cars and EVs, dropped 6.5 per cent or S$9,111 to S$131,889.
Category C, for commercial vehicles and buses, was the only category to register a rise on Thursday, climbing 3.4 per cent or S$2,500 to S$76,801.
Category D, for motorcycles, fell 4.3 per cent or S$421 to S$9,389.
In the open Category E – which can be used to register any type of vehicle except motorcycles – premiums dipped 2.9 per cent or S$4,009 to S$136,000.
