COE prices for cars rise sharply
Certificate of Entitlement or COE prices for small cars have reached a new record high in the first bidding round after changes to the COE system kicked in this month.
Prices peaked at $73, 501- that's seven percent higher than the previous bidding round.
From this month, taxis have been removed from the COE bidding process and no longer compete for their quota in Category A.
COEs used for taxi fleet expansion will now be extracted from the quota for Category E.
The move comes after feedback that the taxis may have had an influence on COE prices.
Dealers say the higher COE prices seen in this latest round, are largely due to a cut in COE quota numbers that kick in this month.
Ron Lim, General Manager of Tan Chong Motor Sales, explains.
"Cat A what we are witnessing today, is basically a fresh high. I think no one can actually put a guess into how far the Cat A premium would continue to grow. Simply because we are sort of in unchartered territory, we are looking at quota being reduced by a significant 37 percent 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."
Premiums in all other categories also rose.
Prices in Category B for big cars now cost $94,502 - up 4.4 per cent.
The open category, premiums closed at $95,034, climbing 2.5 per cent.
In category C for Goods vehicles and buses, the COE is now $57,001, rising 2 per cent, by $1,196.
For Category D (Motorcycles), the COE premium is $2,081, rising 12 per cent or $222.
Dealers expect prices to continue to rise further given the lower quota numbers over the next bidding rounds.
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