Car COE premiums resist slow market to remain above S$130,000
Cautious bidding and weak sales, but aggressive bids and orders on hand keep premiums buoyant
Despite a quiet market, Certificate of Entitlement (COE) premiums for cars remained high in the first round of bidding in October. Category A, for mainstream cars, saw a 1.4% drop to S$130,001, while Category B, for larger and more powerful cars, decreased 2.2% to S$130,100. Category E, the open category, maintained the same premium as the previous round at S$137,000.
Industry observers attribute the premium's buoyancy to cautious bidding and weak sales, with dealers needing to secure certificates to meet orders. Ng Choon Wee, a Hyundai distributor, stated that even during the lull, major car show bids kept premiums up. Category B's lower sales were attributed to parents waiting for the PSLE and exam period to make their purchases.
The high value of Category E certificates, valid for three months and transferable, also contributed to the premium's stability. Dealers expect the market to quieten further, but so far, premiums have not significantly decreased.
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- Car COE premiums resist slow market to remain above S$130,000 businesstimes.com.sg
