Singapore

COE premiums up across the board

Certificate of entitlement (COE) premiums closed higher across the board in the latest tender yesterday, with Category A prices jumping nearly 20 per cent.

Premiums for the category, which is for cars up to 1,600cc and 130bhp, jumped to $42,902, just two weeks after they declined to a seven-year low of $36,001 during the previous round of bidding on Sept 6.

The next highest increase was for commercial vehicles, whose premiums rose about 9 per cent to $46,890.

The increase in COE prices for smaller cars was to be expected, with bidding for the category returning to normal after the unusual decline in the last round, said Mr Neo Nam Heng, chairman of diversified motor group Prime.

The fall in premiums sparked a rush by customers this time, accounting for the dramatic price jump, with an upward trend likely to continue until the end of the year, said Yong Lee Seng Motor managing director Raymond Tang.

COE prices could decrease next year as new stocks of Euro 6 vehicles become more readily available, he said.

But this is unlikely to cause car prices to go down, as built-in surcharges for a new vehicular emissions scheme may "balance out" any decrease in premiums. - THE STRAITS TIMES

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