COE prices up across the board
SINGAPORE: Certificate of
Entitlement (COE) prices rose in all categories on
Wednesday in the first bidding exercise after a
cut in quota numbers kicked in this
month.
The
premium for Category A (small cars 1,600cc and below) soared from
the previous high of S$68,656 to set a new
record of S$73,501. The 7 per cent (or
S$4,845) spike came despite taxis having been removed from
this category.
Taxis
were taken out of the COE bidding process from August after
feedback that they may have had an influence on COE prices. COEs to
be used for taxi fleet expansion will now be extracted from the
quota for Category E instead.
Premiums
in all other categories also rose.
COEs
for Category B (cars 1,601cc and above) now cost S$94,502 each, a 4
per cent or S$4,001 increase, compared with S$90,501 in the
previous bidding exercise.
For
Category C (goods vehicles and buses), the
COE now stood at
S$57,001, compared with S$55,805. This
was an increase of 2 per cent, or S$1,196. ( No bonus for
Sam.seah ). 
For
Category D (motorcycles), the COE premium was S$2,081, compared
with S$1,859. This was an increase of 12 per cent, or
S$222.
In
Category E (open), premiums closed at S$95,034, compared with
S$92,700. This was an increase of 3 per cent, or
S$2,334.
Dealers
said the higher COE prices seen in the latest round were largely
due to a cut in COE quota numbers which took effect in
August.
Dealers
added that the longer break between the latest and the previous
bidding exercises - three
weeks instead of the usual two weeks - was another
factor that pushed up the number of bids and prices this time
round.
Speaking
about the Category A premium, general manager of Tan Chong Motor
Sales, Ron Lim, said: "I think no one can actually put a guess into
how far the Category A premium would continue to grow. We are sort
of in uncharted territory as we are looking at the quota being
reduced by a significant 37 per cent this round.
"The
taxi companies might be out of the game right now in Cat A, but
just the sheer size of reduction in terms of quota in itself, I
think is the big factor behind today's price
increase."
Industry
players Channel NewsAsia spoke to said the high COE premium for
small cars will affect those selling mass market
brands.
"The
buyer profile has actually changed a lot in terms of
affordability," senior manager at KIA Motors Chee Kee Min
said.
"If
you look at the rationale of it, if you're already paying S$70,000
to S$90,000 for a basic piece of COE, you might as well pay a
little bit more to own a so-called better car, with better
specifications and all."
Dealers
expect prices to continue to rise further, given the lower quota
numbers over the next bidding rounds.
-
CNA/wm
