COE premiums decrease for the second consecutive tender, with more certificates available for the next three months.
On November 6, the price of Certificate of Entitlement (COE) premiums dropped across all categories in the latest tender exercise. This marked the second consecutive decline in COE prices following the previous round.
The premium for a Category A COE, for smaller, less powerful cars and electric vehicles (EVs), decreased by 2.9% to $99,889 from $102,900 in the previous round. The premium for Category B COEs, for larger and more powerful cars, fell 5.2% to $108,001 from $113,890.
The price for Open category COEs (Category E), which are typically used for larger cars, also dropped by 5%, from $114,700 to $109,000. Category C COEs for commercial vehicles decreased by 6.3% to $68,340. Motorcycle COE premiums (Category D) also saw a decline, falling 5.2% from $9,589 to $9,089.
This tender marked the first under the new three-month quota period, with a 3.6% increase in COEs available for tender compared to the previous period. Dealers attribute the decline to the Land Transport Authority’s announcement of increased COE availability over the next few years, though it is uncertain how long the trend will continue.
Demand for Category A COEs dropped, with 10.7% fewer bids compared to the previous round, while Category B saw a 6.6% increase in demand. Some dealers speculated that fewer customers were willing to pay over $90,000 for a Category A COE, narrowing the price gap between Categories A and B.
As the year-end approaches, dealers are unsure whether prices will continue to fall or rise in the final tender exercises of 2024.
